SANTOS has started oil production at its Chim Sao project offshore Vietman, five years after entering the country.
Santos said the project had been delivered on schedule and under budget.
Gross oil production is expected to plateau at about 25,000 barrels per day.
Shares in Santos today gained 17c, or 0.97 per cent, to $12.45 at 0815 AWST.
Chief executive David Knox said Chim Sao was the second of four new projects within Santos’ base business to begin production this year.
The Halyard/Spar project in Western Australia commenced production in June.
The other two projects, Reindeer in WA and Wortel in Indonesia, are on schedule for first production by the end of this year, Mr Knox said in a statement released yesterday after market close.
Britain’s Premier Oil is the operator of Chim Sao, which is 31.8 per cent held by Santos.
Also yesterday, the gas potential of the Zola asset, a joint venture including Santos offshore WA, was deemed by an independent expert as being substantially greater than originally estimated at more than two trillion cubic feet.
Santos holds 24.7 per cent of the Zola project while Apache is the operator with a 30.25 per cent interest.