Santos Completes Scotia Project Early
Australia’s second largest independent oil and gas company Santos has completed the Scotia CF1 project in Queensland ahead of schedule and under budget, the company said April 26.
The project, which will be used to supply both Santos’ Gladstone LNG export project and domestic customers, has initial production exceeding 40 TJ (1.07mn m3) per day which is in line with expectations, and is intended to ramp up to about 70 TJ/d at peak production late next year.
“The project was estimated to cost A$493mn [$373mn], but the team has delivered it for A$416mn, sixteen per cent under budget,” Santos CEO Kevin Gallagher said: “Site infrastructure is also running three months ahead of schedule and some of the well completions are a year ahead of time."
Santos also announced April 26 that is has sold its non-core Denison Trough assets in Queensland to Orient Pty Ltd, which is owned by a consortium of Shandong Order Gas Company and Orient Energy, for up to A$43mn; the assets comprise Santos’ 50% non-operated interest in the Denison conventional assets as well as ATP 1177.
Gallagher said the sale of the Denison assets is consistent with Santos’ ongoing strategy to realise value from its non-core assets.