Santos has taken a final investment decision on the Van Gogh Infill Development Phase two project in the Exmouth basin offshore Western Australia.
The project designed to maximize field production, access additional reserves and reduce production costs, will involve drilling and completing of three new horizontal, dual-lateral production wells and a subsea tieback to existing infrastructure.
Santos expects to produce first oil in late 2021, and has already ordered long lead items such as subsea xmas trees and wellhead systems to ensure an early start-up.
The semisubmersible Valaris MS1 will drill the wells, likely starting the campaign in early 2021.
Santos managing director and CEO Kevin Gallagher pointed out that the commitment comes just over a year since the start-up of Phase one, the value of which was said to have been enhanced by a strong premium to Brent realized for the crude.
The Van Gogh field in the WA-35-L permit is one of three subsea oil field developments tied into the FPSO Ningaloo Vision.
Production from the field started in 2010, with Coniston and Novara tied back to the FPSO in 2015 and 2016, respectively.
