AWE said that the contract was made possible by recent significant gas discoveries in the Perth Basin of Western Australia, most notably in the Redback area.

Origin Energy has signed a contract with AWE under which it will sell up to 25 PJ of gas to AWE for use in the sales contract between AWE and Synergy.

“The gas sales will start immediately, and will be for a period in excess of five years,” AWE said.

The contract includes all of the currently uncontracted gas owned by AWE in its existing gas fields.

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The contracts are subject to the confirmation of reserves in the Perth Basin by the end of 2010, and to Western Australian ministerial approvals.

Origin and AWE are joint venture participants in the fields incorporated in the contract. In the Redback area covered by the Beharra Springs L11 permit, Origin holds a 67 per cent interest and AWE holds a 33 per cent interest.