But the disaster will still slash $25 million to $30 million from its 2004 calendar year profit and reduce cash flow by $35 million to $40 million despite the payout.

“This has been a detailed process given the nature of the claim,” Santos said in a statement.

“Santos and its insurers have now completed their assessment and will proceed to evaluate and finalise the quantum of the claim.”

The company said it expected to be able to recognise a major proportion of the insurance claim in its financial results for the year ending 31 December 2004.

Interests in Moomba are: Santos (operator) 59.75%, Delhi Petroleum 20.21%, Origin Energy 13.19%, Novus Australia Resources 4.75% and Basin Oil (OMV) 2.1%.