Santos Announces Start of PNG LNG pre-FEED study

Wednesday, April 11, 2007

Santos today announced that it has entered into an agreement with ExxonMobil, Oil Search and Nippon Oil to jointly progress a detailed pre-FEED study of a standalone LNG project based on the Hides gas field in Papua New Guinea.

Under the terms of the Cost Sharing Agreement, the pre-FEED study will evaluate technical and commercial merits of developing a 5.0 to 6.5 million tonne per annum LNG facility, targeting first cargos in the 2012 to 2013 timeframe.

The Hides gas and condensate field (Santos 25% working interest) is expected to underpin the gas volumes required, with additional gas potentially sourced from the nearby Juha and Angore fields.

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