Oil projects cost A$90m

Oil projects cost A$90m

ADELAIDE, Australia (Reuter): Santos Ltd said total development costs for the Elang and Kakatua oil projects in the Timor Sea, approved for development by its board yesterday, would be A$90 million, of which Santos' share would be A$19 million.

Santos said the fields, in the ZOCA 91-12 permit of the Timor Sea Zone of Cooperation between Indonesia and Australia, would pump 30,000 barrels of oil a day once production started in mid- 1998. Santos has a 21.43 percent stake in the project.

Other partners are Petroz NL with 14.95 percent, operator The Broken Hill Pty Co with 42.42 percent, and Indonesia's Inpex Sahul Ltd with 21.21 percent.

Petroz announced the go-ahead for the project earlier yesterday.

"Elang/Kakatua will make a substantial contribution to Santos' oil production over its expected short life of 2-3 years," Santos managing director Ross Adler said.

"This will supplement production from existing fields and from the Stag and SE Gobe oil fields which are also expected to commence production in 1998," he said.

Petroz said the fields had total proven and probable reserves of about 17 million barrels of oil.