Chim Sáo

Location

Block 12W permit, located in the Nam Con Son Basin, approximately 350 kilometres offshore southern Vietnam.

Participants

Santos – 31.875%

Premier Oil – 53.125% (operator)

PetroVietnam (PVEP) – 15%

Project Overview

The Chim Sáo oil field was discovered in 2006 and is located in the Nam Con Son Basin, approximately 350 km offshore southern Vietnam within exploration Block 12W.

Chim Sáo  oil and associated gas will be produced via an unmanned, minimum facility wellhead platform located in approximately 100 metres of water. Liquids will be exported from the platform via FPSO and gas offtake will be connected to the existing Nam Con Son pipeline via an approximately 100 kilometre pipeline.

The processing and offtake facilities will have plateau production of 25,000 bbl/day (gross). Associated sales gas will be compressed and exported to the Vietnamese domestic gas market.

The Chim Sao field proven and probable (2P) reserves are estimated at approximately 48 mmboe (Santos share approximately 14 mmboe).

Current Status

During the second quarter the wellhead jacket was positioned, pipeline installations were completed and the development drilling program commenced in accordance with the project schedule.  Construction of the wellhead platform topsides is nearing completion for deployment in late July 2010.  The conversion of the 'Lewak Emas' FPSO is proceeding as planned.

First Production

First oil remains on target for the second half of 2011.