Santos has announced a final investment decision (FID) on the $3.6bn Barossa gas and condensate project, located offshore Northern Territory, Australia.
The Barossa gas and condensate field located in the Timor Sea, 300km north of Darwin, is being developed together with the nearby Caldita field under the Barossa offshore development project.
Additionally, the Barossa gas project includes mooring of a floating production, storage, and offloading (FPSO) vessel, drilling of subsea production wells along with the installation of associated subsea infrastructure and a new gas export pipeline.
It also includes a pipeline tied to the existing Bayu-Undan to Darwin LNG pipeline.
Santos plans to commence gas production from the Barossa project in the first half of 2025.
The firm said that the FID on the LNG project will also enable the launch of a $600m investment in the Darwin LNG life extension and pipeline tie-in projects.
Santos managing director and CEO Kevin Gallagher said: “Our strategy to grow around our five core asset hubs has not changed since 2016. As we enter this next growth phase, we will remain disciplined in managing our major project costs, consistent with our low-cost operating model.
“As the economy re-emerges from the Covid-19 lockdowns, these job-creating and sustaining projects are critical for Australia, also unlocking new business opportunities and export income for the nation.
“The Barossa and Darwin life extension projects are good for the economy and good for local jobs and business opportunities in the Northern Territory.”
Moreover, the FID paves the way for the closing of the previously announced Santos’ 25% stake sale in the Darwin LNG plant and Bayu-Undan gas field to SK E&S for $390m.
SK E&S owns a 37.5% stake in the Barossa gas and condensate project.