Emperor Energy Ltd (ASX:EMP) is continuing to progress its Memorandum of Understanding (MOU) with APA Group (ASX:APA) related to the development of gas delivery pipelines and a processing plant for Emperor’s Judith Gas Field Project offshore Gippsland Basin, Victoria.
100% Emperor Energy owned VIC/P47 offshore Gippsland Basin showing regional permits along with oil and gas fields
The parties have now agreed the pre-Front End Engineering Design (FEED) scope of works to be included in an early works agreement that will progress a preliminary design and cost study for the establishment of:
- A subsea pipeline from Emperor Energy’s Judith Gas Field;
- A new gas processing train to operate in parallel with APA’s existing Orbost Gas Processing Plant; and
- An export pipeline to the Eastern Gas Pipeline located to the north of the Orbost Gas Processing Plant.
APA will now progress to determine costs for the scope of the pre-FEED study from suppliers and engineering consulting groups.
After costs for the study are determined, APA and Emperor Energy intend to negotiate a binding contract in the first quarter of 2020 for the completion of the pre-FEED study for the Judith Gas Field Project.
Contingent and Prospective Resources for Judith area of VIC/P47
The parties intend to commence the pre-FEED study in second quarter 2020. Importantly, the completion of this pre-FEED study will add certainty to a future Judith Gas Field project feasibility study.
It will also provide clarity on the scope and shorten the timeframe required for the completion of the project FEED that would be carried out after drilling of the Judith 2 exploration and appraisal well.