A RESOURCES company is reviewing a plan to continue drilling for gas off the Surf Coast as it weights up the impacts of federal government market intervention.<\/p>\n
Cooper Energy had been due to make a final investment decision on its Otway Phase 3 Development early this year, but stated in its latest quarterly update that the project was in limbo as the government brought in new regulations for the sector.<\/p>\n
In December last year, federal cabinet implemented changes to the wholesale gas market including a temporary price cap on sale contracts, and forcing producers into a code of conduct that had previously been voluntary.<\/p>\n
“Sanction of the [OP3D] project is now subject to satisfactory resolution of the Federal Government’s proposed mandatory Code of Conduct and reasonable pricing mechanism, and joint venture support,” Cooper’s March quarterly report stated.<\/p>\n
But the report also indicated Cooper’s confidence in the project eventually occurring. The company continued engineering and design work in anticipation of more favorable conditions to come.<\/p>\n
Cooper owns exploration licenses for areas south-west of Port Campbell, and uses pipelines that connect to the Anthena Gas Plant on shore.<\/p>\n","protected":false},"excerpt":{"rendered":"
A RESOURCES company is reviewing a plan to continue drilling for gas off the Surf Coast as it weights up the impacts of federal government market intervention. Cooper Energy had been due to make a final investment decision on its Otway Phase 3 Development early this year, but stated in its latest quarterly update that […]<\/p>\n