Santos plans Peluang tie-back to extend Maleo?s life

Australian oil, gas company Santos Limited will extend the economic life of Maleo gas field in Madura Offshore PSC, East Java with the tie-back of Peluang discovery.

The company revealed in a presentation released on Thursday that the final investment decision for Peluang development will be made in the second half of 2012 with start-up expected to begin in the second half of 2013.

According the company, Maleo?s project life can be extended to 2017 through reserve upgrade and Peluang tie-back. Peluang is estimated to contain 45 BCF of recoverable gas.

Currently, Maleo is producing at the rate of 110 MMCFD with gas sold to East Java users at new rate of US$5 per MMBTU with price escalation.

Santos is the operator of the block with 67.5 percent interest.

Santos also operates the nearby Sampang PSC which currently produces 60 MMCFD of gas and 2,400 BPD of crude from Oyong field. (alex)