Students on the EcoBoat learn to balance environmental protection with economic development.
On board the EcoBoat
Santos has partnered with Fauna & Flora International in the EcoBoat – an interactive ‘floating classroom’ in Vietnam’s picturesque Ha Long Bay.
The EcoBoat initiative gives local and international students hands-on experience in balancing environmental conservation with economic development.
While staying on board the EcoBoat, students explore caves, talk to local communities and businesses, learn marine safety, navigation, and scientific measurement of the natural environment. They use this experience to create their own sustainable vision for Ha Long Bay – a World Heritage Site and national treasure.
In Indonesia, Santos continued its commitment to working with local communities, helping local fishermen and food business owners to improve their operations and create avenues to broader markets.
Santos also installed 1.2 kilometres of pipeline to deliver clean water to village homes, and supported road development and coastal lighting.
The company’s focused Asia strategy continues to progress, with producing assets delivering strong performance in 2009 and multiple options for growth.
The developing Wortel and Peluang prospects add to the producing Maleo and Oyong assets in Indonesia, the Chim Sáo oil project in Vietnam has been formally approved, and exploration in the Bay of Bengal and the Kyrgyz Republic is progressing.
Indonesia: new project and further growth
Santos’ Indonesian assets are now firmly established as part of the company’s base business portfolio. The business has continued to display incremental growth in producing assets, and in 2009 brought the new Oyong Phase-2 gas project online.
The Phase-2 project included modifications to the existing offshore Oyong facilities and construction of a 60-kilometre pipeline to a new onshore gas processing facility.
The project in East Java started production on schedule in the third quarter of 2009. The project was delivered safely, and was ramped up to production capacity within 20 days.
Oil production from Oyong began in September 2007, and to date has produced more than four million barrels.
The nearby Wortel development is proposed to be tied back to Oyong. A final investment decision for Wortel is targeted for mid-2010, with first gas forecast for the second half of 2011.
Also in East Java, the Maleo gas field continued to produce strongly. The nearby Peluang-1 well was drilled in the first quarter of 2009, and has the potential to tie back to Maleo to maintain plateau production levels.
First oil project in Vietnam
Santos’ first oil project in Vietnam, Chim Sáo, has been formally approved. Work on the wellhead platform is well underway and first oil is expected in the second half of 2011.
Santos has a 31.875% non-operating interest in the Chim Sáo field, which is located offshore southern Vietnam in the Nam Con Son Basin.
Also in Vietnam, 2D seismic surveys are complete in offshore Block 123 in the Phu Khanh Basin, north of Chim Sáo and Dua. Drilling is planned there for 2011.
Bay of Bengal and Bangladesh
In Santos’ offshore acreage in the Bay of Bengal, an extensive 3D seismic program began in 2009 and is largely complete. Santos is targeting natural gas, which could be sold to the domestic Indian market. Interpretation of seismic results is ongoing.
Santos has two deep water exploration licences that cover about 16,500 square kilometres in the north of the Bay. They were awarded by the Indian Government in 2007 under the competitive New Exploration Licensing Policy. Santos has shot over 300 kilometres of 3D seismic which is being evaluated with a view to drilling in 2011-12.
In Bangladesh, a well optimisation program is extending the life of the offshore Sangu field. The Sangu field has associated onshore gas processing facilities, positioning Santos to feed the nearby Chittagong gas market.
A 3D seismic program for the Magnama and South Sangu fields is planned for early 2010.
Kyrgyz Republic: leading acreage position
Santos has established a leading acreage position in the Fergana Basin in the south of the Kyrgyz Republic. Santos holds interests in six prospecting licences covering approximately 2,700 square kilometres in the proven oil and gas province.
2D seismic work has been completed and shallow drilling occurred in 2009. Deeper drilling is planned for 2010 and 2011 to further evaluate the potential of these assets.
If successful, existing pipelines and refineries will enable production to be brought on quickly and will provide multiple export options.
Santos has secured an option for further acreage in the Fergana Basin, adding to production potential.