Australia?s Santos farms in E. Java exploration block

Australian top oil producer Santos Limited had struck deal to acquire 45 percent working interest in Bawean I offshore exploration block from Anglo-American energy giant BP Plc., an industry source said.

?The deal was closed early this week. BP will retain 55 percent working interest in the block and operatorship,? said the source. The source did not reveal more detail.

The Bawean I PSC is located in offshore East Java, including Bawean Island, and approximately 110 km northeast of the recent BP Kepodang Field gas discovery. BP currently holds 100 percent working interest in the block.

BP had identified exploration gas prospect named 'Titan', as well as several other potential gas leads. The Titan prospect has been defined by high quality 3D seismic and is located in approximately 270 feet of water, with bright seismic gas anomalies in the Middle Miocene at -2100 feet subsea, analogous to the Kepodang Field. Estimated gas in place for the prospect is around 600 billion cubic feet.

Bawean-1 PSC firm work commitments include the drilling of two exploration wells, a remaining 3D seismic commitment of approximately 325 km2 within the first 3 years of the contract.

Santos already operates two successful exploration blocks in East Java; Sampang PSC, with Oyong oil and gas discovery which will soon to be developed and Madura Offshore PSC where it discovered gas at Maleo-1, with the well expected to contain between 200 to 450 billion standard cubic feet of gas reserves. (alex)