Gas Starts to Flow From Australia's Halyard Field

Santos has announced commencement of gas production from the Halyard-1 well operated by its  joint venture partner Apache Energy.

Located in the Greater East Spar development area, approximately 70 kilometres west of Varanus Island, offshore Western Australia,  gas from Halyard-1 will be produced via the East Spar pipeline and processed through the Varanus Island gas plant, which also processes Santos’ gas from the John Brookes field.

“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,” Santos chief executive David Knox said and expressed his happiness over delivery of first gas from the project on time and within the budget.

Santos' overall production and sales through the Varanus Island hub will remain around current levels until incremental processing capacity is available to Santos at Varanus Island.

According to Santos Vice President WA & NT John Anderson, the latest development reinforces Santos’ position as a major contributor of gas to the local market.

“Halyard gas represents an important new energy source for Western Australia. Santos already supplies domestic gas from the John Brookes field through Varanus Island and later this year we will begin delivering gas from the Reindeer field through the new Devil Creek plant later this year,” Mr Anderson said.

Santos has a 45% interest in Halyard-1 while Apache Energy holds the balance.