In addition, 1000 metric tonnes each of propane and butane have also been loaded onto the Liberdade Floating Storage Offtake vessel to pre-cool the LPG storage tanks in advance of LPG production from the field.

The project has successfully opened two wells for production as part of the commissioning and start-up procedures for the Wellhead Platform Number1.

"Bayu-Undan remains on schedule for first liquids production in April 2004 and this latest achievement gives us increased confidence we will successfully deliver commercial liquids production in coming weeks," Said Santos managing director, John Ellice-Flint.

Santos, with a 10.6% interest, is the only Australian-owned company involved in the Timor Sea project while ConocoPhillips with a 56.7% interest is operator.

The project's first stage - due to come on stream in April 2004 at an estimated cost of US$1.8 billion - is the Gas Recycle (Liquids) Project which involves the stripping of Natural Gas Liquids (condensate and LPG) from the Bayu-Undan field's gas stream and re-injecting the residual gas.

The second stage Liquefied Natural Gas (LNG) development involves transporting the residual gas to Wickham Point, Darwin in the Northern Territory for processing into LNG for export to Japan. The LNG project is estimated to cost around US$1.5 billion with production to commence in the first half of 2006.

Interests in the total Bayu-Undan project are ConocoPhillips (Operator) 56.72%, ENI 12.04%, Santos Group 10.64%, INPEX 10.52%, Tokyo Electric Power Company, Incorporated/Tokyo Gas Co 10.08%.