Santos reports Indonesian Q4 oil, gas production

Australian-based oil and gas firm Santos Limited has released on Thursday its 2011 fourth quarter report. The following is an edited excerpt of the report on the company?s oil and gas production in Indonesia.

Production
During the quarter, Santos signed an agreement to increase the Maleo gas price to US$5/mmbtu with escalation, effective from 1 June 2011. The resulting adjustment to 2011 production (-1.8 PJ) has been reflected in the fourth quarter.

Santos? net entitlement to gas production in Q4 2011 was 5.3 PJ after the year-to-date adjustment.

Santos? net entitlement to crude oil production of 0.043 mmbbl was lower when compared to Q3 2011 mainly due to a planned shutdown of Oyong for Wortel tie-in construction.

Development projects
Wortel project (Santos 45%, operator)

The Wortel project was approved for development in November 2010. Wortel is located seven kilometers west of the Santos-operated Oyong oil and gas field, offshore Madura Island in the Sampang PSC, East Java, Indonesia. The project includes two gas wells, a minimum facility wellhead platform and a 10-kilometre gas pipeline to the existing Oyong wellhead platform. Wortel gas production will then flow through the existing 60-kilometre pipeline to the onshore gas processing facility at Grati for processing and onward sale.

The Wortel wellhead platform jacket and topsides have been successfully installed. Drilling of the two Wortel wells is complete and the pipeline from Wortel to Oyong is complete and ready to receive gas. Precommissioning activities have commenced and first gas is expected by the end of January 2012. (end of edited excerpt)