Cooper Energy has signed heads of agreement (HoA) to supply gas from Sole field located in Otway Basin in Victoria, to O-I Australia.
Under the terms of the agreement, Cooper will supply gas of one petajoule (PJ) per annum for eight years from its share of Sole production to O-I Australia.
The contracted gas volume represents 8% of the company’s share in the expected production from the field.
Located in VIC/RL3, offshore Victoria, the field is expected to commence production in early 2019.
The field, equally owned by Cooper Energy and Santos, is currently under front end engineering and design (FEED) phase.
Cooper Energy managing director David Maxwell said: "We expect to secure further agreements for the sale of gas from Sole over the remainder of the current calendar year, which will underwrite development of the field."
The agreement is subject to an affirmative final investment decision (FID) scheduled for September 2016 for the field development.
The field development comprises single vertical subsea well and pipeline to the Orbost gas plant which is also connected to the Eastern Gas Pipeline.
Maxwell said the Sole field commercialization is expected to meet gas demand in Eastern Australia.