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Santos has been advised by operator Apache Energy Ltd that an incident has occurred that has affected the export gas pipelines from Varanus Island. The incident has resulted in a total cessation of production, including from the John Brookes field, in which Santos has a 45% interest.

John Brookes gas is processed through the East Spar Joint Venture (Santos 45%) processing facilities on Varanus Island. The John Brookes gas field has not been damaged, however all production from the field has been shut-in. Santos’ equity production from the John Brookes field in Q1 2008 was 1.36 mmboe.

Varanus Island is located approximately 100 km from Karratha on Australia’s Northwest Shelf.

Santos will continue to work with the operator to resume production in a safe and environmentally responsible manner as soon as possible.

Attached is the most recent press release in relation to the incident issued by Apache.