Santos?s Oyong field secures gas sales to Indonesia Power

Australian oil and gas company Santos Limited announced on Monday that its wholly owned subsidiary Santos (Sampang) Pty Ltd had entered into a Heads of Agreement (HoA) with PT Indonesia Power for the sale of the entire gas reserves of the off-shore Oyong field in East Java.

The HoA had been signed to supply the gas to PT Indonesia Power's 766 MW open and combined cycle gas turbine facility at Grati, 60 kilometers southwest of the Oyong field, Santos said.

The Oyong field is estimated to contain in excess of 90 billion cubic feet of recoverable gas. The field is apart of Sampang production sharing contract (PSC). Santos has 45 percent of working interest in the block, while Coastal Indonesia Sampang Ltd and Cue (Sampang) Pty Ltd hold 40 percent and 15 percent, respectively.

According to Santos, the Joint Venture is working to complete development approval as soon as possible. Front End Engineering Design for the Oyong development is expected to be concluded by the end of the first quarter 2003.

?First gas supplies from the Oyong field are expected to commence under the gas sales agreement in late 2004, with a minimum of 60 million cubic feet per day of gas being delivered to Grati. Payment will be in US dollars,? Santos said in a statement. (robert)