Santos Finalizes Investment Plan for Reindeer Gas Project

Australian oil and gas company Santos has announced the final investment decision for the Reindeer gas project located in the Carnarvon Basin offshore Western Australia. Santos’s share of the estimated project capital cost is $379 million.

First gas is targeted by the end of 2010. The gas will be produced via an unmanned wellhead platform located in 65m of water. Gas and liquids will be exported from the platform to a new onshore gas processing plant via a single 105km pipeline.

The processing plant, to be located at Devil Creek, will have a capacity of 215 tera joules per day and will deliver sales gas and stabilized condensate. Sales gas will be compressed and exported to the Western Australian domestic gas market via the Dampier-Bunbury natural gas pipeline.

The Reindeer field’s proven and probable reserves are estimated to be approximately 485 petajoules (PJ) of sales gas, with Santos’s share at approximately 220PJ, and 1.6 million barrels of condensate, with Santos’s share at approximately 0.7 million barrels.

David Knox, Santos’s CEO, said that the formal approval of the Reindeer gas project represents another important step in monetizing Santos’s significant gas resources and highlights the positive impacts of bringing a significant new source of gas supply into the rapidly growing Western Australian market.