Major facilities contracts let for Barossa project ahead of FID
Santos Ltd. has awarded contracts for the supply and installation of subsea infrastructure for the Barossa gas fields project in the Timor Sea. These are the last major facilities commitments prior to making a final investment decision, which is expected during this year’s second quarter.
The contract for transport and installation of all subsea umbilicals, risers, and flowlines plus the supply of in-field flowlines has been awarded to Subsea 7. Aker Solutions will provide the umbilicals and National Oilwell Varco Denmark I/S will supply the flexible risers.
The award of a contract for the floating production, storage, and offtake (FPSO) facility was made at the end of October 2019 to MODEC International Inc.(OGJ Online, Oct. 30, 2019). The vessel will store condensate extracted from the gas stream for periodic offload to tankers.
Barossa field is in retention lease NT/RL5, 300 km north of Darwin. The development concept comprises the FPSO, six subsea production wells, supporting subsea infrastructure, and the export of gas to Darwin LNG plant via a new 260 km undersea pipeline that will tie into the existing Bayu-Undan-Darwin line. Nearby Caldita field will be tied in at a later date.
ConocoPhillips is operator of the Barossa joint venture with 37.5%. SK E&S and Santos each hold 37.5%. Santos is also a member of the Darwin LNG joint venture with 11.5%.
Santos will take over the operatorship as well as ConocoPhillips’ share in the project and the LNG plant upon completion of a $1.5 billion deal announced in October 2019 (OGJ Online, Oct. 14, 2019). Santos plans to sell-down some of the bought interests to SK E&S such that in the final analysis Santos will hold 43.4% of Darwin LNG, 62.5% of Barossa/Caldita, and 43.4% of Bayu-Undan fields.
Santos said it expects to bring the Barossa project on stream in 2024. Development costs are $4.7 billion.
The project is expected to extend the life of the Darwin LNG plant by more than 20 years. Planning approvals are in place for an expansion to 10 million tonnes/year of LNG.