Cooper Energy Signs Gas Sales Agreement for Sole Gas Project

Cooper Energy has signed a heads of agreement (HoA) with O-I Australia for sale of gas from Sole gas project in Australia’s Gippsland Basin.

The Sole project 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 eight per cent of the company’s share of the field‘s anticipated production. 

Cooper Energy holds a 50 percent 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 Limited.

“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 commence in January 2019,” Cooper said in a statement. 

O-I Australia’s parent company Owens-Illinois, Inc. (O-I) is the world’s leading glass container manufacturer and operates four manufacturing plants in Australia.