AUSTRALIAN company Santos has announced the start of production from its Peluang gas project offshore East Java in Indonesia, ahead of schedule.

After getting the green light for the project in February 2013, the Peluang project is a tie-back to the existing facilities at the Maleo gas field and is located in the Madura Offshore Production Sharing Contract (PSC).

Santos is operator of the project, with a 67.5 per cent stake, while PC Madura holds 22.5% and PT Petrogas Pantai Madura holds the remaining 10%.

Expected to have gross peak production of 25 million standard cubic feet of gas per day, the facility boasts one horizontal gas well, a minimum facility stand-alone wellhead platform and a pipeline to the Maleo platform.

Santos Vice President Asia, Western Australia and the Northern Territory John Anderson said the company was also focused on developing its recently acquired position in the Ande Ande Lumut oilfield in the West Natuna basin.

Gas from the project will be used by domestic consumers in East Java, as is gas produced from Santos’ other interests in Indonesia, Santos President Indonesia Marjolijn Wajong said.
“We already have gas production from the Oyong, Wortel and Maleo fields in offshore East Java, so this builds on our capacity in the region,” she said.

“Peluang also demonstrates our ability to deliver new projects in Indonesia.”