Santos to Bring Onyong Field Onstream by 2004

Santos plans to bring its Oyong natural gas field in the East Java Sea onstream by the fourth quarter of 2004. A deal is being negotiated with PT Indonesia Power for sales of all the gas reserves from the Sampang production sharing area which includes the Oyong field. Oyong field is estimated to contain 90 billion cubic feet of recoverable gas and an initial conservative recovery of 5 million barrels of oil from the 80 million barrels estimated to be in place.

The contract calls for Santos and its partners to deliver a minimum of 40 million cubic feet of gas per day to the generating plant at Grati. Oil and gas from the field will be delivered via a 14-inch pipeline to Grati, where it will be separated and the oil stored for export. Engineering design contracts have been awarded for the pipeline route. Contracts for the platform location and environmental impact survey have also been awarded.

Santos is the operator of the Sampang PSC with 45%; Coastal Indonesia hold 40% and Cue Energy holds the remaining 15%.