Santos starts first production at Oyong
September 24th, 2007
Santos Ltd says first oil production from the Oyong project in Indonesia has started, with an investment decision for gas production from the operation expected before the end of the year.
The project, which is located offshore East Java in Indonesia, is expected to produce between 8,000 and 10,000 barrels of oil per day.
“First oil production from Oyong is an important milestone for Santos as it adds another operated project to our Asian portfolio,” Santos managing director John Ellice-Flint said.
Santos said front end engineering design for development of the Oyong gas reserves was underway with a final investment decision expected before the end of 2007.
A sales agreement has been signed with PT Indonesia Power, with gas to be piped to an onshore processing facility adjacent to the Grati power station in East Java.
First gas production is expected in the first half of 2009.
Santos said the Wortel gas field located about seven kilometres west of Oyong could be potentially incorporated into the gas development.
The Wortel field was discovered last year, with further work planned for the first half of 2008.
The Oyong project is a joint venture between Santos, Singapore Petroleum Sampang Ltd and Cue Sampang Pty Ltd.
Santos is the operator and majority stakeholder in the project.
The oil and gas producers shares added 10 cents to $14.42 by 1025 AEST on Monday.
Source: www.smh.com.au
Entry Filed under: East Java News
Leave a Comment
You must be logged in to post a comment.
Trackback this post | Subscribe to the comments via RSS Feed