Santos to spend $130 million in 2006 Indonesian capex

Australian top oil company Santos Limited will spend A$130 million in capital expenditure for its Indonesian operations this year, the company revealed in an announcement posted Thursday.

The company plans to drill 5 exploration wells and 1,558 sq km 3D seismic in its East Java acreages and 3 explorations wells in Kutei basin, offshore East Kalimantan block. The company also plans to drill 3 appraisal wells in Jeruk oil discovery in Sampang Block offshore East Java throughout this year and simultaneously conduct development studies. Santos managing director John Ellice-Flint said he did not expect Jeruk to come into production until 2007.

Santos said that Maleo gas field in Madura Block offshore East Java would commence production in the second half of this year with gas flow expected up to 110MMCFD. The field has gross 2P reserves of 240 BCF. Gas from the field would be supplied to East Java electricity firm.

Santos is operator both in Sampang and Madura blocks.(alex)