This creates the possibility for early startup of the project near the end of this year, depending on weather and logistics which will become clearer over the coming months.

Santos Managing Director and Executive Officer Kevin Gallagher said, "the possibility of early production from Pikka has been created with completion of the pipeline a year ahead of schedule and I am very pleased with the good, and improving, well results we are seeing as we execute the drilling program."

In its Pikka update Santos said 17 of 26 wells planned for first oil in the 80,000-barrel-per day Pikka Phase 1 project have been drilled.

The four production wells tested have demonstrated "continuous improvement on hydraulic stimulation and compare favorably to pre-drill expectations. The highest initial 30-day production rate is 7,850 barrels of oil per day, with an overall average rate so far of 6,900 barrels per day per well," Santos said.

The grind and inject facility for handling drilling wastes is up and running.

The seawater treatment plant barge is being readied to leave Indonesia for Alaska in the third quarter of this year.

"No material impacts are expected as a result of US tariffs, with the project supporting US energy policy and goals," Santos noted.

--KAY CASHMAN