Santos Working to Resume Production After Varanus Incident


John Brookes Field - Australia
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Santos has provided an update issued by Apache Energy Limited in relation to the Varanus Island incident.

The incident occurred on June 3 and has resulted in a total cessation of production from both the East Spar Joint Venture and the Harriet Joint Venture. The processing and export facilities for both of these Joint Ventures are located on Varanus Island. Santos has a 45% interest in the John Brookes gas field and the East Spar Joint Venture gas processing facilities and no interest in the Harriet Joint Venture.
 
The Operator has advised that the resumption of production from Varanus Island is planned to commence with gas from the John Brookes field. The Operator’s recent advice is that the East Spar Joint Venture will achieve partial processing and export capacity of approximately 200 TJ/d gross (Santos share 45%) in mid August.
 
Assuming the Operator’s schedule to complete repairs and commence gas processing is achieved, the net production loss to Santos in 2008 is estimated at 1.2 mmboe.
 
Santos will continue to work with the Operator to resume production in a safe and environmentally responsible manner as soon as possible.
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