Santos farms in to Madura PSC
Australian operator Santos Ltd. agreed to farm in to the 4,246 sq km Madura offshore production sharing contract in the Madura Strait, East Java. The farm-in agreement gives Santos (Madura Offshore) Pty. Ltd. the operatorship of and 75% interest in the PSC.
By the OGJ Online Staff
HOUSTON, Aug. 27 -- Australian operator Santos Ltd. agreed to farm in to the 4,246 sq km Madura offshore production sharing contract in the Madura Strait, East Java.
The farm-in agreement gives Santos (Madura Offshore) Pty. Ltd. the operatorship of and 75% interest in the PSC, which is 102 km east of Surabaya in shallow water. Talisman (Madura) Ltd. will retain a 75% interest.
Santos will drill a well this year at its sole cost.
Santos said the agreement would give it increased exposure to a trend that includes the recent Oyong oil and gas discoveries and Anggur prospect. A drillstem test of a 4-m interval in Oyong-1 well flowed 762 b/d of 41.9°-gravity oil and 1.22 MMcfd of gas through a 24/64-in. surface choke (OGJ Online, Aug. 23, 2001).
Final testing of the Oyong 1 discovery found more than 1,100 b/d of oil flowing through a 11-mm choke at flowing tubing head pressure of 999 psi. Gas flowed at over 12 MMcfd through a 19-mm choke at a flowing tubing head pressure of 1,005 psi.
Santos� Managing Director John Ellice-Flint said, "The Madura PSC farm-in leverages our recent discovery in the Sampang PSC. The Madura PSC is on-trend with the Oyong oil and gas discovery and the Anggur prospect where Anggur-3 has commenced drilling. The farm-in gives us greater exposure to this emerging hydrocarbon play."
He said Santos hopes for Oyong production within 2 years.
The company said, "The Madura offshore PSC permit is 35 km from the Oyong 1 and 2 hydrocarbon discoveries that intersected a 145-m hydrocarbon column, 110 m of gas and 35 m of oil." Most of the PSC is in less than 100 m of water.