Santos on Track with Moomba Plant Reinstatement

Santos Limited reports that it is on track to increase gas supplies from the Moomba gas plant in central Australia following the incident on January 1, 2004.

On 8 January the Company announced Stage 3 of the Moomba recovery plan which was targeting daily gas production of 450 terajoules per day (TJ/d) within 6-8 weeks.

Progress to date is in line with the original schedule and it is expected that Moomba will be able to meet typical expected summer demand levels during the second half of February.

Current supply from the Moomba plant, under Stage 2 of the recovery plan, is around 200 TJ/d (nearly 45% of typical summer demand), an increase of 30 TJ/d over the last two weeks.

Approximately 60% of current supply is being contributed by field gas which is being processed through the Moomba plant, with the balance being sourced from underground storage.

Santos understands that gas supplies from Moomba and other producers are currently adequate to meet average summer demand.

Santos recommenced gas supplies, under Stage 1 of the recovery program, at a rate of 100 TJ/d on January 3, 2004.

Progress is also being made on a fourth stage, targeted to achieve full sales gas production capacity of about 650 TJ/d. This involves additional plant reinstatement to allow the accessing of full capacity under the Dew Point Control mode of operation that is to be utilized in Stage 3. Stage 4 is targeted for completion during the second half of April.

Plans for the full reinstatement of natural gas liquids production (Stage 5) are currently being progressed and are expected to be finalized in early February.

As previously advised, oil production is currently running at around 90% of normal levels.

Investigations into the cause of the unforseen incident on January 1st are continuing.

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