Cooper Energy and AGL Energy have entered into a new gas sales agreement (GSA) for all developed and un-contracted volumes from the Casino, Henry and Netherby fields in the Otway Basin, and amendments to the existing Sole GSA.
These new agreements will take effect from January 1, 2022.
The new Otway Basin GSA is for the supply of all developed and un-contracted volumes from the existing Casino, Henry and Netherby wells.
The term is the earlier of cessation of production from the existing wells for the first production from the Otway Phase 3 Development (OP3D).
Pricing for the new GSA is consistent with the ACCC’s July 2021 Gas Inquiry interim report range of $6-8/GJ for contracted gas supply.
The Sole GSA has been amended so the annual contract quantity (ACQ) is reduced from 12 PJ/year to 6 PJ/year and the term extended by two years to December 31, 2030.
The amendments include a mechanism to increase the ACQ by up to 6 PJ/year from future Sole production increases, with the total incremental volume for AGL capped at 30 PJ.
Sole production above the previous total contracted volume of 22 PJ in 2022, or incremental volume not purchased by AGL will be avail to sell into new contracts.
Managing director David Maxwell said the new gas sale agreements with AGL are further demonstration of the flexibility within Cooper Energy’s gas portfolio and the steps being taken to optimise value and position the company for future growth.
“We are pleased to be working closely with AGL and look forward to ongoing collaboration,” he said.
“The new gas sale arrangements are a further illustration of Cooper Energy taking decisive action to increase certainty and position the company for further growth.”