The two fields, with combined reserves between 70 million and 196 million barrels of oil, were confirmed during 2002 and are currently being developed to target first production by mid-2005.

Santos' managing director, John Ellice-Flint said the project is important for the company, which sources about 50% of its annual oil and gas liquids production from WA.

"This is critical as we have commenced the commercial and technical activity focused around having a Floating Production Storage and Offloading facility (FPSO) onsite at Mutineer/Exeter, 160 kilometres offshore from Dampier, by mid-2005.

"In parallel with this work will be other field development in collaboration with our joint venture partners to ensure Mutineer/Exeter becomes a commercial success within three years of discovery."

The company has placed the project in the hands of former OMV and Apache project manager Janet Hann. She has been involved in a number of recent oilfield projects, including project manager for Patricia-Baleen and the Stag field and project manager for the definition and concept selection phases of the Legendre project. Santos is currently addressing tenders for the FPSO development.

In 2002, production from Santos' Western Australian field interests averaged in excess of 30,000 barrels of oil equivalent per day. The company also drilled nine operated wells in Western Australian waters.

Santos currently holds 16,200 square kilometres in WA's offshore exploration acreage, including interests in 10 operated permits and 31 non-operated permits.

The new office is located in the Forrest Centre, 221 St Georges Terrace, Perth.