Santos hopes to commence Maleo gas production 2006

Australian top oil and gas firm Santos Limited said its Maleo gas field in Madura Offshore PSC offshore East Java could be brought to production as early as 2006 with capacity of 100 million standard cubic feet per day (MMCFD) for five years.

The company said in its presentation in Investor International Roadshow that gas sales head of agreement with state electricity firm PLN are underway. The company is targeting to seal the deal this year.

The company said it would possibly build offshore processing plants with 3 gas wells to tap the gas and had three option to pipe the gas; using Trans Java Gas Pipeline, which also transport BP?s gas from Pagerungan gas field to East Java; pipe the gas to Grati power plant via Oyong gas field, which is also operated by Santos and developing separate pipeline direct to Grati.

Santos discovered Maleo last year, with gas reserves of 250-400 billion cubic feet.

Madura PSC is operated by Santos, which also holds 75 percent working interest in the block, with the remaining 25 percent owned by Canadian top oil producer Talisman Energy.

Meanwhile, the company also said that first gas flow from its Oyong gas field in Sampang PSC also offshore East Java is expected to commence late next year at the rate of 40 MMCFD. (alex)