Gas crisis hits Santos production

Oil and gas company Santos has forecast a net production loss of 1.2 million barrels of oil equivalent for 2008 thanks to the Varanus Island gas incident.

The pipeline rupture and subsequent explosion at the Apache Energy's facility earlier this month prompted the Australian company to halt production at its 45 per cent John Brookes gas field.

The remaining 55 per cent is held by Apache.

"The operator has advised that the resumption of production from Varanus Island is planned to commence with gas from the John Brookes field," Santos said in a statement.

Apache yesterday put out a timetable for the restoring of gas supplies to the state, estimating that partial production of 200 terajoules per day will resume on August 15 through the East Spar joint venture, which processes gas from John Brookes.

Gas supply will then be ramped up to 350TJ in December as the Harriet JV facilities are returned to production.