Page 11 - AsianOil Week 48 2021
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Cooper may acquire Orbost
gas processing plant
FINANCE & AUSTRALIAN independent Cooper Energy from Cooper Energy’s Sole gas field through the
INVESTMENT has confirmed a local report that it is consider- plant, noting that the transition agreement with
ing the acquisition of the troubled Orbost nat- APA expires on May 1, 2022,” the company said.
ural gas processing plant from infrastructure It added: “Cooper Energy is considering a
operator APA. range of options on the basis that the plant has
Cooper said on December 1 that it was con- not yet reached nameplate capacity. Options
sidering the acquisition of the plant as part of its for the long-term arrangements may include
review of arrangements regarding the processing amendments to the gas processing agreement or
of gas from the offshore gas field. The announce- an acquisition of the plant.”
ment was in response to a report by The Austral- Credit Suisse analyst Saul Kavonic told The
ian that Cooper’s request for a trading halt until Australian Financial Review on December 1 that
December 3 was a result of its ongoing talks to a takeover was likely driving the plant’s opera-
buy the plant for AUD200mn ($141.9mn). tional troubles.
Technical issues have repeatedly stymied Kavonic said that Cooper might have “to deal
APA’s efforts to reach the plant’s nameplate with its intractable position at Orbost with APA
processing capacity, leaving Cooper to meet by buying APA out”, before adding: “A potential
its contractual obligations from its Otway equity raise to fund growth or an Orbost acquisi-
Basin production as well as back-up gas supply tion has weighed over Cooper’s share price.”
arrangements. The developer said on November 3 that
“Consistent with previous communications, Orbost’s average processing rate in October was
Cooper Energy advises that it is in regular dis- 35 TJ (911,700 cubic metres) per day, far below
cussions with APA regarding current and long- the field’s average gas sales volume of 59 TJ
term arrangements for the processing of gas (1.54mn cubic metres) per day.
Cue Energy seals NT gas supply deal
PROJECTS & AUSTRALIAN independent Cue Energy has Cue’s contracted gas supply is up to a total
COMPANIES entered into a new natural gas supply agreement of 950 TJ (24.75mn cubic metres), with the
with the Northern Territory’s Power and Water volumes to be aggregated with Macquarie Mer-
Corp. via a back-to-back agreement with Mac- eenie, Central Petroleum and New Zealand
quarie Mereenie. Oil & Gas (NZOG) for a total supply of 12.6 PJ
Cue said on November 29 that under the (328.21 mcm) over the contract term.
agreement it would supply gas to the NT govern- The supply agreement includes take or pay
ment-owned utility over four years from January provisions and a fixed price subject to annual
1, 2022. consumer price index (CPI) escalation. The
Week 48 03•December•2021 www. NEWSBASE .com P11
