Santos today announced that natural gas production has commenced ahead of schedule and on budget from the Peluang gas project offshore East Java in Indonesia. Sanctioned in February 2013, Peluang is a tie-back to the existing facilities at the Maleo gas field and is located in the Madura Offshore Production Sharing Contract (PSC).

The project is expected to have gross peak production of 25 million standard cubic feet per day. Santos Vice President Asia, WA&NT John Anderson said Peluang first production represented the delivery of another project into the company’s expanding Asian portfolio.

“Peluang is the fourth operated asset for Santos in South East Asia. The success of first gas ahead of schedule and on budget with Peluang represents another significant milestone in the company’s delivery of a strong growth strategy in Asia,” he said. “In addition to Peluang, Santos is also focused on progressing our recently acquired position in the Ande Ande Lumut oil field in the West Natuna Basin.”

Santos President Indonesia Marjolijn Wajong said Peluang gas will be used by domestic consumers in East Java, Indonesia, as is the case with other gas produced by Santos in East Java.

“We already have gas production from the Oyong, Wortel and Maleo fields in offshore East Java, so this builds on our capacity in the region. Peluang also demonstrates our ability to deliver new projects in Indonesia,” she said. Santos has a 67.5% interest and is the operator of the Madura Offshore PSC. Other partners are PC Madura Ltd and PT Petrogas Pantai Madura.