The project will enable increased production from the field, access additional reserves and reduce unit production costs
Santos unveils final investment decision for Van Gogh Infill phase two project in Australia. (Credit: Pixabay/C Morrison)
Australian energy company Santos has taken a final investment decision on the Van Gogh Infill phase two project in Australia.
The project will enable increased production from the field, access additional reserves and reduce unit production costs
The work on the phase two project will include the drilling and completing of three new horizontal, dual-lateral production wells and subsea tieback into the current infrastructure.
The Van Gogh field is one of three subsea oil field development projects in the Exmouth Basin, offshore Western Australia. The fields tie into the Ningaloo Vision, the Floating Production, Storage and Offloading vessel (FPSO).
Santos owns 52.5% stake in the project
Santos has selected Valaris MS1 mobile offshore drilling unit for the project and the drilling estimated to begin early next year.
Santos managing director and CEO Kevin Gallagher said: “It’s little more than a year since the start-up of Phase One, so I’m delighted to see FID being advanced on Phase Two in such a short timeframe.”
“Phase One proved to be a very successful project, with higher reserves delivered for lower cost, the value of which was enhanced by a strong premium to Brent realised for this crude.”
The Van Gogh field has been producing since 2010, while the nearby Coniston and Novara fields tied back to the FPSO in 2015 and 2016, respectively.
The Van Gogh-Coniston-Novara project is operated by Santos, which owns 52.5% in the project, while the remaining stake is owned by INPEX.
In January last year, Santos produced first oil from the Van Gogh infill project in the offshore Exmouth Basin in Western Australia.
The project, which commences in 2018, involved drilling of two subsea wells and connecting them into existing offshore infrastructure.