In a statement Kardaya said, “Santos will sell the gas to Indonesian gas distributor PT Perusahaan Gas Negara at a price of $US2.24 per million British thermal units. It is expected that approximately 50 million cubic feet of gas per day will be sold from the field.” The contact is expected to be signed on 25 June.

Maleo is estimated at between 200 billion and 450 billion cubic feet, about 140km east of Surabaya in 58m of water.

The discovery is about 7km from an existing gas pipeline to Surabaya, which is Indonesia's second largest city.

Participants in the Madura Offshore PSC are Santos (operator) 75% and Talisman (Madura) 25%.