Santos to double 2005 Indonesian capex

Australia?s top oil producer Santos Limited said it might double its 2005 capital expenditure in Indonesia to develop its East Java oil and gas fields, a company official said Wednesday.

Chris Newton, President and General Manager of Santos Asia Pacific, which oversees Indonesian operations, said Santos would spend over US$ 100 million next year, mainly for development of Oyong and Maleo fields.

Oyong field in sampang PSC is expected to commence first oil in the third quarter of 2005 with first two year production of 9,000 BPD, while gas is expected to flow the following year. Maleo field is expected to commence production in 2006.

Newton said Santos also planned to undertake five exploratory drillings, mainly in East Java PSC?s next year. Santos had just announced discovery in Jeru-2 well in Sampang PSC that flowed some 7,500 barrels of oil per day.

Newton said Indonesia remain high on Santos investment list. ?Currently Indonesia is Santos? largest E&P operations outside Australia,? said Newton. (alex)