Santos Commits to $490m Fletcher Finucane Project

Oil and gas company Santos (STO) has confirmed that it will develop the Fletcher Finucane oil project in Carnarvon Basin off the northwest coast of Western Australia worth $490 million. Santos will contribute $236 million of the capital expenditure of the project as its venture participants Kufpec Australia and JX Nippol Oil and Gas will share for the remaining costs.

The first production of the project is expected to start in the second half of 2013--producing 15,000 barrels per day for one year, with reserves estimated at 14 million barrels. It will be linked to the nearby floating production, storage and offloading facility of Santos at Mutineer Exeter.

Santos owns 48 per cent interest of the project after buying the 8.2 per cent stake of Tap Oil (TAP) for $21.7 million.