Santos Adds Queensland Rights
Leading Australian gas producer and LNG exporter Santos has been given the rights to explore for more gas in the Australian state of Queensland, the state government said April 6.
Santos, along with its joint venture partners Total, Malaysian state Petronas, Korean state-run Kogas and APLNG have been awarded exploration rights to an 86 km2 area in Queensland’s south-west, about 65 km north of Injune in the Bowen Basin, mines minister Anthony Lynham said: “This area holds significant gas resources, which will further add to the gas being produced by workers here in Queensland and made available for domestic use and export markets."
Santos executive vice president for exploration and new developments Bill Ovenden said the tender is ideally located: “Being adjacent to the Santos-planned Arcadia project means the company will be able to leverage existing infrastructure, reduce development costs and produce more gas."
The company will need to negotiate land access agreements and fulfil any existing environmental and Native Title requirements before the exploration authority is granted and work can begin.
Santos is the subject of a takeover bid by US private equity-backed Harbour Energy, which Santos's board said this week it is evaluating.
Lynham noted that tenders are currently open for gas companies to explore for gas in 10 areas in the Bowen, Surat, Adavale and Eromanga basins. “That includes more than 6000 km2 for gas that can only be sold in Australia, and not exported,” the minister added.
APLNG also recently gained a 95 km2 petroleum lease in the Surat Basin. “This area has the potential to produce 251 bn ft3 of gas over the next 30 years,” Lynham said: “APLNG will commence production on the site within the next three years using their existing Combabula gas processing facilities."