Santos to expand Otway Basin production after sales agreement

Adelaide-based oil and gas producer Santos will move ahead to bring on stream gas production from its onshore Otway basin venture in Victoria, after a sales agreement with a gas retailer.

Santos will run its three Otway fields at full capacity, after signing a 25 petajoule, 30-month sales agreement with the undisclosed gas retailer.

Gas supplies for the new sales contract were expected to commence in July and would be met by the onshore Otway Basin discoveries in Victorian permits PEP 153 and PEP 154 and processed by Santos' recently upgraded Heytesbury plant located about 160km south-west of Melbourne.

The sale will see Santos take all of Beach's gas production from Beach's 10 per cent entitlement to gas production from four wells in the onshore Otway Basin in Victoria.

The gas discoveries were made in 2001 by a Beach/Santos joint venture and have been commercialised progressively since March.