Cooper Energy Ltd. has signed a Heads of Agreement (HoA) with O-I Australia defining the key terms for the sale of gas from the Sole gas field in the Gippsland Basin, Australia.
The HoA is the first agreement for the supply of gas from Sole, which is currently in front-end engineering and design (FEED) in preparation for the final investment decision (FID).
The HoA sets out the key commercial terms for the supply of gas of one petajoule (PJ) per annum for the lesser of eight years, or the life of the field, from Cooper Energy’s share of Sole production. The volume contracted represents 8% of the company’s share of the field‘s anticipated production. Cooper Energy holds a 50% interest in Sole and the Orbost gas plant, from which the gas will be supplied to O-I Australia, with the balance being held by Santos Ltd.
The terms set out in the HoA will form the basis of a fully termed gas sales agreement which will be subject to an affirmative FID for development of the field. It is expected the FID will be made by September 2016, and that first supply from Sole to O-I Australia would begin in January 2019.