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Summary

East Spar Gas Contracts - New Agreements Reached

East Spar Gas Contracts – New Agreements Reached

Santos today announced that the East Spar Joint Venture (ESJV) had contracted for the sale of additional gas volumes under two further agreements with Western Power and Plutonic Operations Limited.

The ESJV will supply Western Power natural gas at the rate of approximately 10 terajoules per day, commencing later this year. Natural gas will be used by Western Power as an additional power generation fuel source.

The agreement with Plutonic will see the ESJV supply natural gas at the rate of approximately 4 terajoules per day commencing late 1997, for Plutonic’s operations in the Eastern Goldfields.

These contracts are in addition to existing agreements to supply gas to WMC Resources Ltd’s nickel and gold operations in the Goldfields and at Kwinana (approximately 46 terajoules per day), BHP Minerals’ power station at Mt Newman (approximately 9 terajoules per day) and to AGL Gas Trading Pty Limited for the Westralian Sands’ Westlime project (approximately 1.5 terajoules per day).

The ESJV have now contracted in excess of 50% of East Spar proven gas reserves. Negotiations for further contracts are well advanced.

Commenting on the signing, the Managing Director of Santos, Mr Ross Adler said:

“Santos sees Western Australia as being important for the company’s future growth in the gas business, which is one of the reasons why an additional 30% interest in East Spar was acquired from WMC.”

“We are pleased with the East Spar acquisition, which is performing in line with our expectations at the time at which the acquisition was made.”

The participants in the East Spar Joint Venture are as follows:

  • Santos (BOL) Pty Ltd 45%
  • Ampolex (A.O.E) Pty Limited 35%
  • Apache Oil Australia Pty Ltd 20%