Santos to build mobile production unit for E. Java?s Maleo gas field

Australian oil company Santos Limited has unveiled its plans to build a mobile offshore production unit (MOPU) for the processing, compression and export of gas for its Maleo field in the Madura Offshore production sharing contract (PSC) area, East Java.

In a bidding invitation released on Tuesday, Santos said it scheduled to commence the project in first quarter 2004 with duration of less than 15 months required for the conversion and mobilisation phase.

Santos planned to split the project into three phases namely conversion and mobilisations services, operating services and demobilisation and abandonment services.

Maleo was discovered in June last year with gas reserves estimated at around 250-400 billion cubic feet. Gas production from this field is expected to start as early as 2006 with capacity of 100 million standard cubic feet per day for five years to contribute to the significant energy needs in East Java.

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. (robert)