Santos achieves first gas at Halyard-2 offshore well

ADELAIDE, February 14, 2025 – Australian independent gas-focused E&P company Santos has commenced first production from the Halyard-2 infill well in the Greater East Spar field offshore Onslow, Western Australia, the company announced on Thursday.

 

Drilled to replace the depleted Halyard-1 well, Halyard-2 will supply an additional 1.8 mcm (65 mcf) of gas per day to the Varanus Island hub for processing and convert approximately 9 million boe of sales gas and condensate to 2P developed reserves, according to Santos’ estimates.

“This is a valuable short-cycle capex project, delivering incremental low-cost volumes into the portfolio through to 2027 and supporting a reduction in unit production costs in 2025. It demonstrates Santos’ commitment to a disciplined low-cost operating model and our focus on efficient execution,” said Santos managing director and CEO Kevin Gallagher.

The Varanus Island Hub is located approximately 75 kilometres offshore and is the base of Santos’ operations in Western Australia. It channels gas via pipeline to the mainland, where it is supplied to mining and industrial customers, while oil and condensate are stored on the island and transferred to tankers for direct export.