In January 2004, a gas leak caused a fire in the LRP section of the facility, but no casualties or injuries were reported.
The plant was subsequently shut down, with no gas supplies being delivered into pipeline networks for use in NSW and South Australia.
Santos was awarded A$149 million from the total A$231 million claim. This will be received for property damage and business interruption on behalf of the Cooper Basin Producers, and is net of the policy deductible.
A pre-tax profit of $33 million will be booked by Santos in its financial result for the end of this calendar year, representing the excess of the final settlement over the $116 million accrued during the 2004 financial year.
A $54 million portion of the claim has already been received by Santos, with the remaining $95 million to become available in the first quarter of next year.
A deed of release has been executed between Santos and the lead insurer, which agrees the amounts payable and concludes the claim for the LRP incident.
The interests of the Cooper Basin Producers are: Santos Limited (operator and 66.60%), Delhi Petroleum Pty Ltd (20.21%) and Origin Energy Resources 13.19%.
