Australia's Cooper Energy Exits Indonesia

Cooper Energy has exited Indonesia with the announcement of sale of its remaining asset to Bass Strait Oil Company. The Australian firm October 19 said it has accepted an offer from Bass Strait for the sale of 55% interest in the Tangai-Sukananti KSO, South Sumatra Basin, Indonesia. The sale is expected to be complete in three months.  

Cooper Energy's managing director David Maxwell said that the decision to divest its interest in the Indonesia KSO had been driven by the decision to concentrate its resources on its gas growth projects in the offshore Gippsland Basin in Australia.

“The Tangai-Sukananti KSO offers significant upside, as has been demonstrated by the results of our workover and drilling program and the development plan prepared to lift output. While the needs and opportunity of our growth projects in the Gippsland Basin mean Cooper Energy is no longer the right interest-holder for the KSO, we are pleased that Bass has this opportunity and the prospect of ongoing indirect involvement as a Bass shareholder,” said Maxwell.

South Sumatra Basin (Credit: Cooper Energy)

Cooper Energy is currently a 13.5% shareholder in Bass, and is represented on that company’s board of directors by Hector Gordon, executive director, production and exploration.

Gas sales agreement

Meanwhile, Cooper announced October 20 the signing of a binding gas sales agreement with Alinta Energy for the supply of gas from the Sole gas field of up to 2 petajoules/yr for a minimum of five years with provision for a three-year extension.

Cooper holds a 50% interest in the Sole gas field and the Orbost gas plant, from which the gas will be supplied to Alinta Energy, with the balance being held by Santos. The Sole gas field is located in VIC/RL3, offshore Victoria, Australia.

Shardul Sharma