Santos has awarded three engineering contracts, thereby advancing the front end engineering and design (FEED) phase of the Barossa offshore project further.
The award of the FEED contracts is considered to be a major milestone in the advancement of Barossa, which would replace Bayu-Undan production when it ceases in the early 2020s.
Santos managing director and chief executive officer Kevin Gallagher said: “These contracts reaffirm Barossa’s position as the leading candidate for Darwin LNG backfill, with no alternative projects in the FEED phase.
“Barossa would more than double Santos’ production in Northern Australia and significantly increase our portfolio LNG production from early 2024 when strong, unfulfilled LNG demand is expected.”
This project comprises a floating production storage and offloading (FPSO) facility and six subsea production wells, which will be drilled in the initial phase, as well as a subsea production system to support in-field subsea infrastructure and a gas pipeline to Darwin, all located in Australian Commonwealth waters.
MODEC and a consortium between TechnipFMC and Samsung Heavy Industries have been granted separate engineering contracts for the FPSO. The two groups will have to take part in a design competition.
INTECSEA was awarded a third contract for the subsea infrastructure, including umbilicals, flowlines, risers and gas export pipeline.
Gallagher said: “An FPSO design competition between leading engineering contractors with experience in the Australian market will ensure a robust, cost-competitive package is delivered ahead of a final investment decision.”
“Other FEED works are also moving ahead with geotechnical and geophysical surveys of the pipeline route and subsea manifold locations currently underway in the field.”
The Barossa field is located around 300km north of Darwin and lies within Santos’ Northern Australia portfolio, which is one of the company’s long-life, natural gas assets. A final investment decision is aimed towards the end of next year.
Santos holds a 25% stake in the Barossa-Caldita joint venture and partners ConocoPhillips hold a 37.5% stake in the JV along with operatorship, while SK E&S has a 37.5% stake.
Santos is also a joint venture partner in Darwin LNG, holding an 11.5% stake.