Santos says E. Java oil field producing at upper range

Australian oil, gas firm Santos Limited reported on Thursday that crude production from Oyong oil field in Sampang PSC offshore East Java is currently producing at over 10,000 BPD, which is at the upper end of the anticipated initial range.

Oil production from the Oyong field commenced on 21 September 2007.

The company also said FEED for development of the Oyong gas reserves is underway, with a final investment decision expected before the end of 2007, and first gas production anticipated in the first half of 2009.

A gas sales agreement has been signed with PT Indonesia Power, with gas to be piped via a 55 kilometer pipeline to an onshore processing facility adjacent to the Grati power station in East Java.

Meanwhile, the company also reported that production from Maleo gas field in Madura Offshore PSC, also in East Java continues to be impacted by capacity restrictions in the East Java gas pipeline operated by state oil and gas firm PT. Pertamina following a rupture of this line during November 2006.

Santos said Gross production rates from Maleo are currently limited to approximately 92 TJ/day, or about 87 MMCFD.

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