Santos plans quick development of E. Java oil discovery

Australian oil firm Santos Limited said in intended to quickly get Jeruk oil discovery in Sampang PSC, offshore East Java into production.

?We are currently drilling the Jeruk-3 appraisal well, and depending on the results, we intend to move as quickly as possible towards implementing a staged production scheme at Jeruk. Engineering studies are underway and we will provide a further update on the development schedule and estimated resources once the appraisal drilling program has been completed,? CEO John Ellice-Flint said in a speech filed with The Australian Stock Exchange.

Last week Santos reported that the Jeruk- 3 well, had encountered what was interpreted to be the top of the Kujung carbonate at 4960 meters measured depth.

The Jeruk field is located about 42 kilometers east of Surabaya in a water depth of 44 meters. Last year, Santos announced the discovery of oil at the Jeruk-2 well, which flowed at 7,488 barrels per day during tests. Preliminary estimates by Santos put the recoverable reserves at 170 million barrels, but industry players are speculating that the reserves might be much higher than original estimate.

Santos is the operator of Sampang PSC.

Santos is currently in the process of completing Oyong oil and gas field development. The field, which is located in Sampang PSC, will start produce crude in the third quarter of this year and gas the following year. Another field called Maleo in Santos-operated Madura Offshore PSC, also in East Java, would commence gas production in the second quarter of this year. (alex)