Santos highlights Indonesian Q2 activities

The following is an excerpt from Santos Limited's second quarter report released on Thursday.

Maleo gas field, Madura Offshore PSC, E. Java (Santos 67.5%, operator)

Sales gas production from Brantas, Kakap and Maleo of 6.1 PJ was 41% higher when compared with Q2 2007, predominantly as a result of higher customer nominations.

Production from the Maleo field continues to be impacted by capacity restrictions in the East Java gas pipeline (operated by Pertamina) following a rupture of this line during November 2006.

However, the situation continues to improve and gross production rates from Maleo during Q2 2008 averaged approximately 96 TJ/day or about 90.53 MMCFD (up from approximately 89 TJ/day or about 83.93 MMCFD in Q1 2008).

Indonesian crude oil production of 0.27 million barrels (mmbbl) was in-line with Q1 2008.

Oyong field, Sampang PSC, offshore E. Java (Santos 45%, operator)

Oyong Phase 2, development of the gas reserves, achieved project sanction in December 2007. All major engineering, procurement, construction and installation (EPCI) contracts for the project are in place and first gas production is anticipated in 2H 2009. A gas sales agreement has been signed with PT Indonesia Power, with gas to be piped via a 55 kilometre pipeline to an onshore processing facility adjacent to the Grati power station in East Java. (end of excerpt)