Cooper Energy signs new gas supply deal with O-I Australia

10 February 2020 (Last Updated September 17th, 2020 14:23)

Australia-based oil and gas firm Cooper Energy has signed a new gas supply agreement with O-I Australia to supply gas for two years from its Casino Henry production in offshore Victoria.

Cooper Energy signs new gas supply deal with O-I Australia
Cooper Energy has signed Casino Henry gas sales deal with O-I Australia. Credit: wasi1370 from Pixabay.

Australia-based oil and gas firm Cooper Energy has signed a new agreement with O-I Australia to supply gas for two years from its Casino Henry production in offshore Victoria.

Cooper Energy will supply O-I Australia with one petajoule (PJ) per annum of Casino Henry’s gas. This will begin in January 2021.

As well as operating it, the company owns a 50% interest in the Casino Henry joint venture (JV). Mitsui E&P Australia and AWE each hold a 25% interest.

Cooper Energy managing director David Maxwell said: “O-I was our first gas customer and we are delighted at the opportunity this contract has presented to deepen our commercial relationship. It is also the first agreement for supply in 2021 from our offshore Otway operations, where we are investing to build our gas business further.”

The agreement also includes the option for an extension of three years.

Cooper Energy said that the contract marks its third gas sales agreement with O-I.

The contracted volume of gas is about 17% of Cooper Energy’s share of Casino Henry’s 2020 gas production, which is six petajoules.

It intends to begin marketing other volumes of Casino Henry’s 2021 gas production before June.

David Maxwell also said: “We have chosen to focus our business on supply agreements with utility and blue-chip industrial customers that feature the right combination of price, term and load factor to deliver stable long-term cash flow and efficient production.”

Cooper Energy and its JV partners recently acquired a 90% interest in the Minerva Gas Plant, onshore Otway Basin, Australia. This interest previously belonged to BHP Billington.