The APF Tie-In Project will deliver gas from the Santos-operated Agogo Production Facility to the PNG LNG gas pipeline via a new 19-kilometre pipeline, together with two new wells and associated production facility modifications. Santos’ share of capital expenditure is approximately $160 million (gross capex approximately $400 million over three years).
Santos' Chief Executive Officer and Managing Director Kevin Gallagher said the APF Tie-In Project is a highly value-accretive investment that meets Santos’ disciplined capital allocation criteria and will support Santos’ long-term production profile with a ~12-year production plateau, and the potential to continue production beyond 2050.
First gas is targeted second quarter 2028.
The project capex is included within capital expenditure guidance.
Santos holds a 39.9 per cent interest in the PNG LNG joint venture. Joint venture partners are ExxonMobil PNG Ltd, ENEOS Xplora, Kumul Petroleum and the Mineral Resources Development Company.
APF tie-in project
The APF tie-in Project, involves developing associated gas from Santos operated Agogo and Moran oil fields delivering up to 125 mmscf/d gross into PNG LNG, with future optionality, targeting FID ready in 2026.PNG LNG is an integrated development that includes gas production and processing facilities that extend from Hela, Southern Highlands, Western and Gulf provinces to Port Moresby. The facilities are connected by over 700 kilometres of onshore and offshore pipelines and include a gas conditioning plant in Hides and a two-train liquefaction and storage facility near Port Moresby.
LNG production began in April 2014 and since then, PNG LNG has been reliably supplying LNG to four long-term major customers in Asia.
Santos in Papua New Guinea
- Santos has been a committed participant in Papua New Guinea since the 1980s, becoming a producer in 1998 through the SE Gobe oil project in the Gulf Province;
- acquisition of a 24 per cent interest in PDL-1 in 1998 gave Santos access to a significant part of the giant Hides gas field and resulted in Santos becoming a foundation partner in the PNG LNG project.
