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Commencement of Production from SE Gobe


Santos Limited today announced that crude oil has begun to flow from the SE Gobe field 17 months after the issue of the Petroleum Development Licence (PDL) and 15 months after the commencement of construction. The project has been completed three months ahead of schedule and below budget. It demonstrates the ability of the Government, landowners, developers and contractors to efficiently bring complex projects to fruition in Papua New Guinea.

Production is anticipated to rise to 10,000 barrels of oil per day (bopd) by mid-May 1998, with an anticipated maximum flow of 25,000 bopd achieved in July 1998.

SE Gobe lies approximately 80 km to the southeast of the existing Kutubu oil fields.

The SE Gobe oil field straddles two licences, PDL 3 and PDL 4, and is Papua New Guineas first unitised development. Santos Group equity after unitisation and State participation in the field is 6.975%. The proved and probable reserves for SE Gobe are 62.4 million barrels.

SE Gobe is being developed by Chevron Niugini Pty Limited in conjunction with the Gobe Main field, which commenced production on 9 March 1998, with production from both fields flowing to a common production facility for stabilisation prior to export through the Kutubu pipeline system.

Santos General Manager South East Asia, Mr Bob Hall, said:

The project is a milestone for Santos. It represents the companys first production from Papua New Guinea.