Santos commissions $416m Scotia project

Image: Santos

Santos has completed commissioning and start-up of the Scotia CF1 project in Queensland ahead of schedule and under budget, with initial full field production exceeding 40TJ of gas a day.

The Bowen Basin project will supply about 70TJ a day at peak production in late 2019, boosting gas supply to the Santos GLNG project, while also benefitting both the east coast domestic gas and export liquefied natural gas (LNG) markets.

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,” Gallagher said.

“Site infrastructure is also running three months ahead of schedule and some of the well completions are a year ahead of time.”

Queensland Mines Minister Anthony Lynham welcomed the commissioning of the project near Roma in state’s south west.

“This is further fixed capital investment in our $70 billion LNG industry, that supports 7000 oil and gas jobs, generates billions in revenue including $9.8 billion in LNG exports over the 12 months to February 2018,” Lynham said.

“Petroleum royalties alone are forecast to be $151 million in 2017-18, growing to $328 million in 2020-21.”

Santos has also announced the sale of its non-core Denison Trough assets in Queensland to Orient, a consortium owned by of Shandong Order Gas and Orient Energy, for up to $43 million.

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