The front end engineering and design (FEED) stage of the Sole gas field and Orbost gas plant development is underway following Cooper Energy’s 50% acquisition in the project.
The ASX-listed upstream firm has accessed the Sole gas field in the Gippsland basin, 45km offshore Victoria in 120-130m water depth.
The VIC/RL3 joint venture between Cooper and Santos will now work to complete the FEED for a final investment decision to be made in September 2016.
With Santos as operator, both Cooper and Santos have 50% participating interest each in this project.
The FEED phase is budgeted to cost around $27 million, which Cooper will fund 100% as part of its commitment to pay the first $50 million of project costs.
The Sole gas project will comprise a single vertical subsea well and pipeline to the Orbost gas plant connected to the Eastern Gas Pipeline.
Gas produced from Sole will be transported by the pipeline to the Orbost gas plant onshore Victoria, where it will be distributed to eastern Australian customers via the Eastern Gas Pipeline.