Santos makes FID on Agogo tie-in project in PNG

Australian vigor institution Santos has confirmed it volition determination guardant with the Agogo accumulation installation (APF) tie-in task successful Papua New Guinea (PNG).

The last concern determination (FID) connected the task follows support by the PNG LNG associated task (JV) partners.

The inaugural involves delivering state from the Santos-operated APF to the PNG LNG state pipeline done a caller 19km pipeline. The program besides includes adding 2 caller wells and making changes to existing accumulation infrastructure.

Santos Australia and PNG main operating serviceman Brett Darley said: “Key regulatory approvals are successful place, required onshore entree has been secured and each worldly associated task approvals person been obtained.”

Through the project, Santos expects an incremental accumulation capableness of astir 135 cardinal modular cubic feet per time (mscf/d). The company’s nett stock of this volition beryllium astir 54mscf/d.

Santos’ superior expenditure (capex) for the task is estimated astatine $160m, portion full task costs are projected to scope $400m implicit 3 years. The timeline for archetypal state is acceptable for the 2nd 4th of 2028.

The project’s capex has been factored into Santos’ existing guidance.

Santos CEO and managing manager Kevin Gallagher said: “The APF Tie-In Project is simply a high-quality improvement with beardown economics and a wide relation successful our strategy to physique and turn portfolio production.

“The execution of this task volition person Santos’ 66mmboe 2P [66 cardinal barrels of lipid equivalent proved and probable] undeveloped reserves into developed reserves, delivering incremental nett accumulation of ~54mscf/d with important upside imaginable depending connected reservoir performance.

“With an expected interior complaint of instrumentality (IRR) of greater than 50% and a payback play little than 4 years from FID, and astir 2 years from archetypal gas, the task is expected to beryllium powerfully worth accretive, enactment our semipermanent accumulation illustration and prolong provender state proviso to PNG LNG.”

Santos owns 39.9% of the PNG LNG JV. Its partners are ExxonMobil PNG, Kumul Petroleum, ENEOS Xplora and the Mineral Resources Development Company.

Last month, Santos reported the completion of the Quokka-1 appraisal good connected the North Slope successful Alaska, which contributed to further knowing of the Nanushuk reservoir wrong the Quokka Unit.

"Santos makes FID connected Agogo tie-in task successful PNG" was primitively created and published by Offshore Technology, a GlobalData owned brand.

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