Santos Advises John Brookes Production Shut-In Offshore Australia

Operator Apache Energy Ltd advised Santos about an incident that occurred and has affected the export gas pipelines from Varanus Island. The incident has resulted in a total cessation of production, including from the John Brookes field, in which Santos has a 45% interest.

John Brookes gas is processed through the East Spar Joint Venture (Santos 45%) processing facilities on Varanus Island. The John Brookes gas field has not been damaged, however all production from the field has been shut-in.

Santos' equity production from the John Brookes field in Q1 2008 was 1.36 mmboe. Varanus Island is located approximately 100 km from Karratha on Australia's Northwest Shelf. Santos will continue to work with the operator to resume production in a safe and environmentally responsible manner as soon as possible.

Production on the John Brookes commenced in September 2005, producing at an initial flow rate of approximately 6080 terajoules per day. Following an upgrade of the existing Varanus Island facilities, the processing capacity will increase to approximately 240 terajoules per day.

The John Brookes gas field will initially produce around 180 terajoules of gas per day and 850 barrels of condensate per day. The field will has three production wells producing to an unmanned platform.

Raw gas is sent to the Varanus Island processing facility via a 55 kilometre 18 inch multiphase pipeline where condensate is removed and stored and the raw gas is processed into sales quality gas.


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