- Cooper Energy (COE) and APA Group (APA) have executed an agreement to complete the commissioning of the Orbost Gas Processing Plant (OGPP)
- The agreement sets aside any potential claims and entitlements available to either party in a bid to get the troubled plant up and running
- Cooper Energy is hoping to have the plant commissioned so it can begin supplying term gas customers as soon as possible
- Under the deal, both companies will share costs and revenue until OGPP’s commissioning
- In the meantime, another shutdown at OGPP is planned, with phase two works at the plant to begin in the December quarter
- Shares in Cooper Energy are trading for 36.5 cents each, down a slight 3.95 per cent
Cooper Energy (COE) and APA Group (APA) have executed a transition agreement to complete the commissioning of the Orbost Gas Processing Plant (OGPP).
Under the agreement, both Cooper and APA will set aside any potential claims and entitlements available to either party in order to get the troubled plant up and running.
OGPP had to shut down for a second time in June this year, after a fouling issue re-emerged. Another shutdown is planned for six days, beginning August 30.
Cooper is waiting on the plant, which is part of the company’s wider Sole Gas Project, to become operational so it can begin firm supply to term gas customers.
The transition agreement also means that both companies will share costs and revenue while OGPP commissioning proceeds towards completion.
Following the August shutdown, phase two works are expected to begin at the plant in the December quarter and potentially cost $15 million.
Under the transition agreement, both companies would share that cost, however, Cooper said the agreement is subject to the support of the company’s financiers.
“The transition agreement has cleared the table so the single focus of APA and Cooper Energy at Orbost is the start-up of firm gas sales from Sole as soon as possible,” Cooper Energy Managing Director David Maxwell said.
While APA Managing Director, Rob Wheals, said, “APA and Cooper Energy remain jointly focused on commissioning the plant safely and to a high standard of quality and operating performance.”
Shares in Cooper Energy are trading for 36.5 cents each, down a slight 3.95 per cent at market close on August 20.