Santos sees first gas from Oyong, Maleo H2 2005

Australian oil company Santos Limited said final investment decision for Oyong and Maleo fields; both located offshore East Java is expected to be reached in the first quarter of 2004 with first gas from both fields anticipated to flow in the second half of 2005.

Oyong field, which is located within Sampang PSC working area, is estimated to contain 90 billion cubic feet (BCF) of natural gas and 5 million barrels of recoverable oil. Oyong will supply minimum of 40 million standard cubic feet per day (MMCFD) of gas to PLN?s Grati power plant.

Cue Energy Limited, Santos? partner in Sampang PSC said that engineering, procurement, construction and installation (EPCI) for the offshore platform and pipeline and the onshore processing plants have been released for bidding.

Santos has 45 percent interest in Sampang PSC, while Elpaso and Cue has 40 percent and 15 percent, respectively.

Santos said another exploration well called Jeruk would be drilled in Sampang in November after failing to make commercial discovery in Mangga-1 exploration well, which had been plugged and abandoned.

Maleo, which is located within Madura Offshore PSC, was discovered in 2002 with gas reserves estimated at around 250-400 (BCF) and is expected to supply 100 MMCFD of gas to Grati power plant.

Madura PSC is operated by Santos, which holds 75 percent working interest. The remaining 25 percent interest is owned by Canadian top oil producer Talisman Energy.(alex)