Santos announces final investment decision on Arcadia project in Australia

ADELAIDE -- Santos and its GLNG Partners will invest more than A$400 million in the 137-well Arcadia gas project in the Bowen basin, in Queensland’s Central Highlands region.

The A$400-million Arcadia investment is in addition to the A$900 million it is investing in upstream developments in the Maranoa, Western Downs, Central Highlands and Banana regions of Queensland this year.

Santos Managing Director and CEO Kevin Gallagher said, “The Arcadia gas project will create up to 300 construction jobs and local business opportunities in the Central Highlands region, helping to sustain and boost the benefits of Santos’ and GLNG’s earlier investments.”

“This initial phase of the Arcadia development will, at its peak, deliver in excess of 75 TJ/day to the gas supply for the GLNG project. This is great news for both the domestic gas market and our LNG exports.”

The project, located near Injune, about 680 km northwest of Brisbane, will involve drilling 137 new wells and constructing a 140-km gas and water gathering network, two 4G communication towers, a new compression station, a 4 ML per day water treatment plant, a 5 MW gas-fired power station, and associated roads and infrastructure.

Gallagher said the decision to sanction the project follows a very successful 13-well pilot program, which tested changes to the planned well design and operating philosophy.