Santos? Maleo gas output still impacted by pipeline

Australian oil, gas firm Santos Limited reported on Thursday that gas production from Maleo field in Madura Offshore PSC, East Java continued to be impacted by capacity restrictions in the East Java gas pipeline (operated by Pertamina) following a rupture of this line during November 2006.

The company said gross production rate from Maleo during the fourth quarter of 2007 was averaged approximately 83 TJ/day or about 78.27 MMCFD.

Meanwhile, the company also reported that oil production from the Oyong field in the Sampang PSC, also located in offshore East Java continued in-line with expectations of approximately 8,000 bopd.

The company said front end engineering design for development of the Oyong gas reserves is complete, with project sanction achieved in December 2007. First gas production is anticipated in HI 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.

Santos is the operator of both blocks with 45 percent interest in Sampang PSC and 67.5 percent in Madura Offshore. (alex/denny)