The Cooper Energy Ltd.-led joint venture producing from the Casino/Henry gas fields in the Otway basin offshore western Victoria has signed an agreement with BHP Billiton Petroleum Pty Ltd. to acquire BHPB’s 90% interest in the onshore Minerva gas plant.
Cooper already holds 10% interest.
The agreement, which is conditional on completion of regulatory approvals and assignments, enables the transfer of the gas plant and associated land following the cessation of current production from the offshore Minerva gas field.
On completion of the transaction Cooper will hold a 50% interest in the plant with its JV partners AWE Ltd. and Mitsui E&P Australia Pty Ltd. each holding 25%. In effect, with Mitsui finalizing a takeover of AWE, Mitsui will be an equal partner with Cooper on 50% (OGJ Online, Apr. 5, 2018).
Ownership of the Minerva field in license Vic/L22 and its offshore pipeline to the plant will be unaffected by the transaction, with BHPB retaining 90% interest and Cooper 10%.
The Minerva plant lies 5 km northwest of Port Campbell on the Otway coast. It was commissioned in January 2005 and has the capacity to process 150 terajoules/day of gas. It also has hydrocarbon liquids processing facilities. The plant is tied directly into the SEAGas trunkline which runs from Port Campbell to Adelaide in South Australia as well as to the Southwest pipeline which is owned by the APA Group.
Cooper Managing Director David Maxwell said the Minerva plant is one of three currently processing gas from the offshore Otway basin. The company’s analysis indicates it can offer a highly competitive processing option for gas from the group’s Casino/Henry development in licenses Vic/L24 and Vic/L30 as well as from other gas fields in the surrounding region.
He added that ownership of Minerva plant has a clear strategic merit that can enhance the economics of the region’s gas development and production.
The Casino/Henry JV has done preliminary engineering design work for processing gas at Minerva plant. It will require construction of a 0.25-km pipeline tie-in along with modification of well control systems to connect to the Casino/Henry project.
Casino/Henry JV is currently contracted to process gas at the Iona processing facility until December this year.
Maxwell said that potential benefits from using the Minerva plant include increments to gas reserves and higher production rates enabled by lower plant inlet pressure and reduced processing costs.