Cooper Energy Signs 4th Sole Gas Supply Deal

Cooper Energy has signed a deal with Energy Australia for the annual supply of 5 petajoules (4.7bn ft³) from the Sole gas field offshore state of Victoria for a minimum of five years, with provision for a three year extension.

The deal is conditional upon completion of the transaction for Cooper Energy to acquire Santos Victorian gas assets and a final investment decision (FID) for Sole gas project, Cooper said December 14. Acquisition of Santos’ share in Sole will result in Cooper Energy holding a 100% equity in the field.

The agreement with Energy Australia is the fourth signed by Cooper Energy for the field and takes the annual contracted quantity to 14.6 PJ. That compares with the 25 PJ (23.6bn ft³) annual production expected from the field for the first eight years. Cooper Energy anticipates committing up to 85% of the annual volume prior to FID and is currently engaged in discussions with gas buyers on sale agreements for the remaining quantity. The Energy Australia agreement follows agreements with O-I Australia, AGL and Alinta Energy.

“Our agreement to acquire Santos’ Victorian assets has substantially expanded our gas contracting opportunity,” Cooper’s managing director David Maxwell said.

Sole FID is expected to occur in the March quarter 2017, with first gas from the project scheduled by March 2019. Supply to Energy Australia under the agreement would commence January 2020.

The Sole gas field is located in VIC/RL3, offshore Victoria approximately 62 kilometres from the Orbost gas plant, onshore Victoria, where Sole gas will be processed and delivered to the Eastern Gas Pipeline. Cooper Energy will hold a 100% interest in VIC/RL3 and the Orbost Gas Plant on completion of the Santos Victorian gas asset acquisition (current interest: 50%).

Shardul Sharma