Santos has successfully completed commissioning and start-up of its $400 million Scotia gas project in the Bowen Basin near Roma.
The Scotia CF1 project is producing more than 40 TJ/day and will ramp up to about 70 TJ/day at peak production in late 2019.
More than 400 people worked on the project, which involved expanding the Scotia compression plant and field from 23 to more than 100 wells, building 85km of linear infrastructure, two 4G communications towers and an irrigation system for water treatment.
Santos managing director and chief executive officer Kevin Gallagher said the execution of the project was outstanding, coming in well ahead of schedule and well under budget.
“The project was estimated to cost $493 million, but the team has delivered it for $416 million, 16 per cent under budget,” Mr Gallagher said.
“Site infrastructure is also running three months ahead of schedule and some of the well completions are a year ahead of time.
“This is a testament to the Santos team and reflects our laser focus on cost of supply, innovation and efficiency over the last two and a half years. No other operator can match Santos’ position as Australia’s lowest cost onshore developer.”
Santos today also announced the sale of its Denison Trough assets in Queensland to Orient (Denison Trough) Pty Ltd, owned by a consortium of Shandong Order Gas Company and Orient Energy, for up to $43 million.
Mr Gallagher said the sale of the Denison assets was consistent with Santos’ ongoing strategy to realise value from its non-core assets.