Santos seeks to increase E&P presence in East Java

Australian oil and gas top producer Santos Limited said on Wednesday it was still seeking for opportunity to increase presence in the industrial province of East Java through new exploration programs and possible acquisition of blocks.

?Santos is attracted to East Java by the burgeoning domestic energy market and the significant growth in demand for gas. Over the next 5 years demand for gas in East Java is estimated to exceed supply by over 300 million cubic feet per day.

Santos is well positioned to meet some of this growing demand with production from the Oyong and Maleo fields, with combined resources in excess of 400 billion cubic feet,? said the company in a presentation.

Santos has already had 45 percent interest in Sampang PSC (operator), 75 percent in Madura PSC (operator) and 45 percent in Bawean PSC, all of which are located offshore East Java.

Santos recently signed agreement to sell gas from its Oyong field to state electricity firm PLN, and talks are also underway with PLN to sell gas from its recently discovered Maleo gas field.

Santos is also bidding for at least one exploration block in East Java recently offered by the government.

?Santos? next exploration well in Sampang PSC is the Mangga well. The resource range of this prospect is up to 270 billion cubic feet of gas and is an up-dip test of the Anggur well drilled in 2001. In the event of success the discovery will be developed in conjunction with Oyong. The east Java Basin is an emerging opportunity with multiple plays, both oil and gas, with significant discoveries in recent years in both onshore and offshore,? said the company. (alex).