Cooper, Origin Sign E Aus Supply Deal
Origin Energy has signed its second deal to buy gas for 2018 on Australia’s east coast in as many days – this one with Cooper. The deal is for Origin to purchase 100% of Casino Henry gas production from March to December, Cooper said December 21.
“The new agreement, at current market gas prices, replaces the existing supply agreement with EnergyAustralia which expires on 28 February 2018 and has been in operation since the Casino gas field commenced supply in February 2006,” it said.
Total production from the field for the financial year to date (July-present) has averaged 36 terajoules/day (34mn ft³/d). Increased output is expected following the completion of the workover of the Casino-5 well scheduled for February 2018, Cooper said.
Cooper operates the Casino Henry Joint Venture, with Mitsui E&P Australia and AWE each holding 25% interests. It produces gas from the Casino, Henry and Netherby gas fields located offshore Victoria in the Otway Basin. AWE on December 21 backed a takeover offer from Mineral Resources.
Cooper Energy managing director David Maxwell said the new gas sales agreement was the first step in a program of activities planned to lift production and revenue from the project over 2018 and 2020.
“The new sales agreement aligns Casino Henry gas prices with current market rates and provides strong encouragement for further development of the project’s reserves and exploration for new reserves,” he said.
“We are looking forward to an anticipated production uplift from the workover of Casino-5 in February and are advancing planning for drilling of a well in 2019 to bring undeveloped gas in the Henry field to market,” he said.
The deal follows Origin Energy on December 20 signing a deal to purchase 15 PJ of gas from the Santos-led Gladstone LNG project for the seven months from April to October. Concerns of a gas shortage on Australia’s east coast next year have eased in recent months but the competition watchdog says prices in the region remain too high.