A JERA Co. Inc. subsidiary has agreed to acquire a 12.5% interest in the Barossa gas-LNG project in the Timor Sea north of Darwin from Santos Ltd., Adelaide.
JERA will pay about US$300 million for the stake which includes reimbursement to Santos for the 12.5% share of capital expenditure on the project from March 2020 until completion date.
JERA is an existing 6.1% partner in the Darwin LNG infrastructure that will process Barossa gas. The agreement builds alignment between the Darwin LNG and the Barossa joint ventures for the development and processing operations.
The Barossa project reached final investment decision in March and is on schedule for first LNG in first-half 2025.
The project comprises a floating production, storage and offloading vessel, subsea production wells and supporting subsea infrastructure, plus a gas pipeline that will tie into the existing line from the group’s Bayu-Undan field and Darwin.
Santos also is working on the carbon capture storage opportunity at the depleted Bayu-Undan field in the Timor Sea which could provide a hub for Barossa as well as other projects in the region.
Upon closing of the deal, expected in first-half 2022, the Barossa Project participants will be Santos 50% and operator, SK E&S 37.5%, and JERA 12.5%.
Darwin LNG participants are Santos 43.4% and operator, SK E&S 25%, INPEX 11.4%, ENI 11%, JERA 6.1%, and Tokyo Gas 3.1%.