The Queensland Government has granted Santos, along with its GLNG JV partners and APLNG, rights to explore an 86-square kilometre area in Queensland’s south-west.
The award for the PRL2016/17-1A block is located directly west of Santos Arcadia gas field in the Bowen Basin.
EVP Exploration and New Ventures, Bill Ovenden, said: “Being adjacent to the planned Arcadia project means we will be able to leverage existing infrastructure, reduce development costs and produce more gas.”
Santos is on track to supply about 11 per cent of the ACCC’s expected east coast gas demand in 2018.
“Access to new and existing supply sources in Queensland as well as new supply sources in New South Wales and the Northern Territory is critically important to enable us to continue to deliver competitive gas to the east coast domestic gas market,” he added.
Santos will hold a 22.85 per cent interest in the joint venture along with partners Petronas (20.94 per cent), Total (20.94 per cent), KOGAS (11.42 per cent) and APLNG (23.85 per cent).