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Summary

Approval of Kakatua North Development

APPROVAL OF KAKATUA NORTH DEVELOPMENT

Santos announces that the Australia-Indonesia Joint Authority for the Timor Gap Zone of Cooperation has granted approval for the development of the Kakatua North oil field in ZOCA 91-12, approximately 500 km NW of Darwin. The field is located approximately 12 km west of the Elang oil field in 94 metres of water. It was discovered in February 1997, encountering a 70 metre oil column. The field has gross proven and probable reserves of 12.2 million barrels of oil.

The Kakatua North oil field will be developed in conjunction with the Elang/Kakatua oil field development, which was approved by the Joint Authority in February 1997. The cost of the Kakatua North tie-in will be approximately A$42 million gross (A$9.0 million Santos Group share). First production is targeted for December 1998, approximately two years from discovery and six months after Elang/Kakatua first oil. The Kakatua North development will extend the period of the initial production plateau of 32,500 barrels of oil per day from Elang/Kakatua. Kakatua North production is expected to extend the economic life of the complex to around 5 years and add significant value to the total development.

The development plan for the Kakatua North field involves:

  • Subsea completion of the existing Kakatua North 1A wellbore;
  • Connection of this well via an independent 12 km subsea flowline to the Elang/Kakatua development (which will comprise a leased FPSO moored over the Elang field using a disconnectable single point riser turret mooring); and
  • Production and export of crude oil via shuttle tankers.

Kakatua North is one of two commercially viable discoveries so far this year in the Santos Offshore Australia exploration program. The other discovery in ZOCA 91-12 was the Hingkip-1 volatile oil discovery. This is subject to development consideration in association with the Bayu-Undan gas/condensate field.

Participants in the ZOCA 91-12 Joint Venture are :

  • BHP Petroleum (91-12) 42.417% (Operator)
  • Santos Group 21.426%
  • Inpex Sahul 21.209%
  • Petroz Group 14.948%.