Santos plans Phase Two for Van Gogh oil field offshore Australia

Australian oil and gas company Santos will go ahead with the Van Gogh infill Phase Two project offshore Australia.

The project will involve the drilling and completion of three new horizontal, dual-lateral production wells. It also involves a subsea tieback into existing infrastructure.

In making its final investment decision (FID), the company said the project will maximise field production, access additional reserves and reduce production costs. It is targetting first oil from Phase Two for late 2021.

Santos is aiming to start production as early as possible. Because of this, it has already ordered long lead items such as subsea “christmas trees” and wellhead systems.

Santos is the operator of the Van Gogh-Coniston-Novara project with a stake of 52.5%. The remaining 47.5% interest in the project is owned by Japanese oil firm INPEX.

The semi-submersible mobile rig Valaris MS1 will drill the wells, likely starting in early next year.

Santos managing director and CEO Kevin Gallagher said: “It’s little more than a year since the start-up of Phase One, so I’m delighted to see FID being advanced on Phase Two in such a short timeframe.

“Phase One proved to be a very successful project, with higher reserves delivered for lower cost, the value of which was enhanced by a strong premium to Brent realised for this crude.”

The Van Gogh oil field is one of the three offshore developments that tie into Ningaloo Vision floating production, storage and offloading vessel (FPSO).

Production at the field started in 2010. The nearby Coniston and Novara fields were then tied back to the vessel in 2015 and 2016 respectively.

In January last year, Santos produced first oil from the Van Gogh infill project.