Cooper Energy and Santos have moved the Sole (SEN 31/19) gas field project offshore Victoria, Australia, into the FEED phase ahead of a final investment decision next year.

The decision to progress the project comes after Cooper Energy’s 50% acquisition in the gas field and Orbost gas plant from Santos was finalised.

The Sole gas project is expected to comprise a single vertical subsea well and pipeline to the Orbost gas plant which is connected to the Eastern Gas pipeline. The Orbost gas plant is currently processing gas from the Longtom gas field.

Cooper said gas market offtake contracts and finance for project construction would be developed in parallel with the FEED.

The Santos-operated VIC/RL3 joint venture is targeting FID in the September quarter of 2016.

Cooper Energy managing director David Maxwell said that the start of FEED was a significant milestone for the project and the company.

‘We believe that Sole, as a conventional gas field, with nearby existing infrastructure, is a competitive and attractive source of gas for eastern Australia.’

While project development and costing will be determined by the FEED process, the Sole field, which was discovered by Shell in 1973, is expected to provide gas supply of about 25 PJ/a over eight years after commissioning in late 2018.

Gas produced from Sole will be transported by pipeline to the Orbost Gas Plant onshore Victoria. From there, it can be distributed to eastern Australian gas customers via the Eastern Gas Pipeline.

The FEED phase is budgeted to cost about $27mn, which Cooper Energy will fund as part of its commitment to pay the first $50mn of project costs.

The addition of Sole has more than doubled Cooper Energy’s Gippsland Basin gas resources which now total 183 PJ of 2C contingent resources.

The Sole field is located 65km from the Orbost gas plant and 35km from Cooper Energy’s BMG gas and liquids resource.