Gas producer Santos has started first production at its offshore Halyard 2 infill well, off the coast of Western Australia.
Gas producer Santos has started first production at its offshore Halyard 2 infill well, off the coast of Western Australia.
In an update today, Santos announced the well was producing and went online six weeks ahead of schedule.
The Halyard 2 infill well, about 100 kilometres north of Onslow, is in Commonwealth waters and within the Carnarvon Basin.
It is set to supply an incremental 65 million standard cubic feet per day into Varanus Island, near Karratha.
The Halyard 2 will convert about 9 million barrels of oil equivalent per day of sales gas and condensate to proven and probable developed reserves, Santos said in its announcement.
Santos managing director Kevin Gallagher said Halyard 2 was a valuable short-cycle capex project.
Mr Gallagher said it would deliver incremental low-cost volumes until 2027, and support a reduction in unit production costs in 2025.
“This project demonstrates Santos’s commitment to our disciplined low-cost operating model and our focus on efficient execution of our projects and strong operational results in 2025,” he said.
The National Offshore Petroleum Safety and Environmental Management Authority reportedly approved Santos’s environment plan to drill and complete the Halyard 2 production well late last year.
Halyard 2 replaces the depleted Halyard 1 well, which came online in mid-2011.
The Varanus Island Hub is the base of Santos’s energy portfolio in Western Australia and has been in operation since 1986.
Santos shares last traded at $7.02 each, down 0.57 per cent at market close today.
