MARINE & SUBSEA

Cooper taps Subsea 7 for Sole

Subsea 7's deep Gippsland Basin experience comes to bear in new Australian contract.

 Santos’ map of the Sole project.

Santos’ map of the Sole project.

Cooper gave Subsea 7 the job of tying back the Sole well to the Orbost gas processing plant at Newmerella, which the junior has just given APA Group the exclusive right to acquire and develop.
 
The contact scope for Subsea 7, which defines "sizable" as anywhere between $US50-150 million, includes the fabrication and installation of 64km of pipeline, spool and manifold, along with installation of a 64km umbilical and the commissioning of the system.
 
Subsea 7 said yesterday that the project management and engineering would start immediately from its Perth office, with offshore operations due to start next year. 
 
The material offshore operations are subject to final investment decision on the Sole development project which Subsea 7 said was "anticipated soon". 
 
Subsea 7 managing director, Australia and New Zealand Andy Woolgar said the award drew upon the company's substantial experience of delivering projects in the Gippsland Basin over the last 40 years. 
 
"We look forward to leveraging this established and proven record in pipeline fabrication and offshore installation to help Cooper Energy as it develops its offshore gas resources," he said.
 
Last month Cooper tripled its fiscal 2017 production guidance from less than 300,000 barrels of oil equivalent to about 1MMboe after its purchase of Santos' Victorian gas assets, including Sole, had closed.
 
Santos sold its remaining Victorian gas assets to Cooper for $82 million that freed the seller from $140 million of longer-term aban¬donment costs and a looming $300 million capital spend on the Sole gas project.
 
Cooper, which embarked on a $63 million equity raising to fund the purchase, described the deal as "transformational", pointing to a fourfold production rise and ninefold reserves boost.

 

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry