Santos Sees Record at Van Gogh Asset
Australian energy company Santos has announced first oil from the Van Gogh Phase 2 Infill Development.
Following completion and tie-in, the first of three new production wells at the phase 2 infill project has produced at a peak rate of 23,200 barrels per day. Santos noted that this was well ahead of expectations for a single well and the highest initial rate from an individual well in field history.
First oil from the project comes 16 months after it achieved a final investment decision, Santos highlighted. The Valaris MS1 mobile offshore drilling unit will complete the remaining two wells over the next few months, with start up expected before the end of the year.
The Van Gogh field is one of three subsea oil field developments located in the Exmouth Basin which tie into the Floating Production, Storage, and Offloading vessel (FPSO) ‘Ningaloo Vision’. Production from Van Gogh began in 2010, with the nearby Coniston and Novara fields tied back to the FPSO in 2015 and 2016, respectively.
“The team has done a great job delivering first oil so quickly, accessing additional reserves and lowering unit production costs,” Santos’ managing director and chief executive officer, Kevin Gallagher, said in a company statement.
“I am particularly pleased that this is a great example of Santos creating value from assets we acquired, through an opportunity that was not valued at the time of the acquisition,” he added.
“The Van Gogh crude oil is also a highly sought after product, and the premium to Brent that we get allows further value to be realized beyond the current oil price,” Gallagher went on to say.
Santos has a 52.5 percent interest in the Van Gogh-Coniston-Novara project, which it operates. The remaining interest is owned by INPEX. Santos is Australia’s largest domestic gas supplier and aims to be a leading Asia Pacific LNG supplier.
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