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.