With the Otway Basin-located JV’s gas sales agreement with Origin set to expire on 31 December 2018, the new deal will see the retailer supplied with gas at current market prices from 1 January 2019 through to 1 January 2020.
Cooper Energy Managing Director David Maxwell said the new agreement would provide more gas to an under-pressure east coast market.
“We are pleased to be contributing to the supply of gas for southeast Australian energy users and expect this contribution will lift in coming years,” he said.
“We are also planning to increase our investment in bringing more gas to market, through further development of the Henry gas field and in exploration for new gas fields that can be brought online rapidly.”
Additionally, the JV has entered into a new agreement with Lochard Energy for processing at the Iona Gas Plant for a minimum of one year and a maximum of three years to support transition to the Minerva Gas Plant, which the JV begun the process of acquiring from BHP this year.
“The JV is also looking forward to completing our acquisition of the Minerva Gas Plant in due course, once the Minerva field has ceased production.
“We foresee the plant playing a key enabling role in Otway Basin gas, not only for Casino Henry but also for other discoveries made in the reason.”
The Casino Henry JV is operated by Cooper Energy who possesses a 50 per cent stake in the project.
Mitsui E&P Australia and Peedamullah Petroleum hold the remaining interest in a 50-50 split.