ADELAIDE, Australia – Gas production has started from the Apache Enegry-operated Halyard-1 well off Western Australia, according to partner Santos.
Halyard, part of the Greater East spar development area, will export supplies through the East Spar pipeline for processing on the Varanus Island gas plant, 70 km (43 mi) to the east, which also processes Santos’ gas from the John Brookes field.
According to Santos Chief Executive David Knox, first gas from the Greater East spar project has been delivered on time and budget.
“This is the first of four new projects in our base business to commence production this year. The other three - Chim Sao, Reindeer and Wortel - are all progressing on schedule for first production in the second half of the year.” Gas from the Reindeer field will pass through Australia’s new Devil Creek plant.
In a separate development, Santos has decided against selling its 40% operated interest in offshore permit NT/P 48 (Evans Shoal) in the Bonaparte basin to Magellan Petroleum Australia.
The transaction was announced in March, but conditions for completion were not satisfied by the May 31.
Santos will retain a $15 million non-refundable deposit paid by Magellan.