Santos says Oyong 95 percent completed

Australian oil and gas company Santos Limited said on Wednesday that Oyong oil development phase in Sampang PSC offshore East Java had been approximately 95% complete at the end of 2006, with all development drilling completed and the floating storage and offtake vessel on location in the field.

Initial oil production from the field is expected to reach 10,000 BPD.

Following a re-tendering process, a contract for the leasing of a production barge has been awarded. Modifications are underway and the vessel is expected to be in position to meet the first oil date of Q2 2007, said the company.

?Oyong Phase II first gas production continues to be expected in 2H 2008. Front End Engineering and Design (FEED) work on the onshore processing facilities is 80% complete and FEED work on the pipeline continues,? said Santos in a quarterly report.

Santos is the operator of Sampang PSC with 40.5 working interest.

Meanwhile, Santos also reported that Semangka-1 exploration well in Madura Offshore Block had been plugged and abandoned on November 11, 2006 after reaching the total depth of 4,000 meters.

Santos is the block?s operator with 67.5 percent working interest. (alex)