It follows a  decision earlier this year by Shell to write down the value of its gas assets by between $US8 billion $US9 billion, with about 40 per cent of its asset impairment from Australia. Woodside has also announced massive writedowns on its assets.

Origin said the charges were driven by revised commodity price assumptions and the impacts of the COVID-19 pandemic. Its the second time its APLNG joint venture has been hit by writedowns. In 2017 it slashed $815 million from its stake in the project.

RBC Capital Markets said a $US1 a barrel increase in the oil price would result in a $233m increase in the valuation of the APLNG, implying that if Origin applied a $US63/bbl oil price assumption to the impairment test there would be no write down.

Earlier this year, Origin also announced it would cut capital expenditure in the Queensland coal seam gas upstream business by $400 million.

Origin chief executive Frank Calabria said the company was responding quickly to the COVID-19 pandemic and the decline in commodity prices.

He said the company’s actions had improved resilience.

“Origin is well-positioned over the long term with a business spanning energy retailing, power generation and natural gas which generates strong cash flow, along with exposure to future growth opportunities in renewable energy and new technologies,” Calabria said.

The company said the writedown on the APLNG stake was based on oil price assumptions of $US60 a barrel over the long term and an Australian dollar exchange rate of US 70 cents. This was offset by improved performance and cost reductions.

The company has also increased the restoration and rehabilitation provisions for the Eraring power station by $249 million.

“The increased provision reflects an updated plan to restore sites to enable a wider range of future commercial and industrial uses,” the company said.