First oil from the Basker Manta full field development was expected in the second week of December following the return of the recently upgraded Crystal Ocean FPSO to the Bass Strait location, operator Anzon Australia Limited announced.

Anzon Chief Operating Officer, Andrew Young, said the FPSO arrived on location on 23 November and was reconnected to the subsea production system. “The arrival of the Crystal Ocean is the culmination of six months of major development activities both in the field and in Singapore shipyards”, Young said.

“These activities will allow the full capacity of the original planned facilities to be brought into production, estimated at oil rates of up to 25,000 bopd and gas injection rates of up to 35 MMcfd,” Young said.

The offshore subsea installation vessel, CSO Venturer, departed from the Gippsland Basin two weeks ago. Young said the installation work, in 160 m water depth, included the setting of a production manifold and the connection of five wells, four producers (Manta-2A, Basker 2, 3, and 5), and one tandem gas injector/oil producer (Basker 4).

The upgrade of the two production vessels completed in Singapore, involved the installation of gas handling facilities, including a 7500 HP centrifugal compressor on the Crystal Ocean and the upgrade of the bow loading system and vessel recertification of the Basker Spirit shuttle tanker.
Young said both vessels will be hooked up and undergo commissioning tests prior to first oil from the full field development. “This will complete a significant two year oil development project for the joint venture companies and their shareholders”, he said. The participants in the Basker-Manta JV are Anzon Australia Limited (operator and 50%) and Beach Petroleum Limited (50%).

The upgraded Crystal Ocean FPSO departed Port Melbourne on Tuesday 21 November, bound for the Basker Manta fields in Bass Strait.

Santos has announced it will divest all of its interests in the United States, and continuing to refocus its exploration activities into Australia, Asia and the Middle East.

“Following a strategic review, Santos intends to sell all of its exploration and production activities in the United States”, a company statement said. “Continued high demand for energy in the US has resulted in a strong market for assets in Santos’ US business areas, making it a good time to bring this portfolio to the market.”

The statement said while Santos has a long history of involvement in the US upstream oil and gas sector the company believes that it will be better placed to meet its strategic objectives by re-deploying capital into its other business activities in Australia, Asia and the Middle East.
“Santos’ US operations produced 2.1 MMboe during 2005 and include ongoing exploration and development activities over more than 180,000 gross acres in the onshore and offshore Gulf Coast of Texas, as well as western Colorado.” Santos has appointed Scotia Waterous to provide advice on the sales process.

“Since the start of 2006, Santos has grown its focus areas in Asia by adding acreage in Vietnam to its exploration position in Kyrgyzstan and its extensive exploration, appraisal and production activities in Indonesia.”

The statement said Santos will continue with its active exploration and new ventures programme as it continues to seek opportunities to consolidate its position as one of south east Asia’s leading energy companies.

Fremantle based Mermaid Marine Australia has announced that it is in discussions with an unlisted third party regarding a possible merger and hopes to issue a more detailed announcement on the outcome of negotiations before Christmas.

In a statement to the ASX dated 11 December, Company Secretary, Peter Raynor, said discussions were incomplete and no binding agreement had been entered into. He said any merger would be subject to a number of conditions, including the approval of Mermaid Marine shareholders at a general meeting.

“The discussions currently contemplate that Mermaid Marine will issue new shares to the third party in exchange for the third party’s business”, the statement said. The third party would become the majority shareholder of Mermaid Marine and have board representation.

“The Mermaid Marine board considers that a suitable merger proposal could have significant attractions for Mermaid Marine shareholders and is reviewing the opportunity
carefully.”