ConocoPhillips and its partners have agreed to enter the front-end engineering and design (FEED) phase for the development of the Barossa project to backfill Darwin LNG (DLNG), in W. Australia. This was revealed on Monday by Santos, ConocoPhillip’s partner in the project.
Santos Managing Director and Chief Executive Officer, Kevin Gallagher, said: “The Barossa FEED decision consolidates its position as the leading candidate for DLNG backfill when Bayu-Undan production ceases in the early 2020s.”
He said that a successful Barossa development would more than double Santos’ current production out of Northern Australia.
Gallagher said: “Barossa’s development would extend the operating life of DLNG for more than 20 years, help supply growing demand for natural gas in Asia to clean up Asian air pollution and reduce global carbon emissions, and provide significant jobs and business opportunities in the Northern Territory as well as export income here in Australia.”
The Barossa gas field, 300 kilometers north of Darwin, sits within Santos’ Northern Australia portfolio, one of the company’s core long-life, natural gas assets.
FEED activities will involve engineering and commercial work aimed at finalization of the project’s technical detail, costs, LNG sales agreements and negotiation of access arrangements with the owners of DLNG and the Bayu-Undan to Darwin gas pipeline. A final investment decision (FID) is targeted towards the end of 2019, with first gas expected in 2023.
Contracts for field surveys and engineering for the floating production, storage and offloading facility (FPSO), subsea facilities and export pipeline will be awarded shortly, Santos said.
The development is anticipated to produce natural gas and light condensate. The expected LNG and condensate production rates are approximately 3.7 million tonnes per annum and 1.5 million barrels per year, respectively. The life of the project is expected to be approximately 25 years from first gas.
The Barossa development concept consists of an FPSO, six subsea production wells to be drilled in the initial phase, supporting in-field subsea infrastructure and a gas export pipeline tied into the existing Bayu-Undan to Darwin pipeline, all located in Australian Commonwealth waters.
The FPSO facility will separate the natural gas and condensate extracted from the field with the condensate exported directly from the FPSO facility to offtake tankers in the Barossa offshore development area and the dry gas transported via a subsea gas export pipeline for onshore processing.
The project area encompasses petroleum permit NT/RL5 over the Barossa field and petroleum permit NT/RL6 to the south over the Caldita field to be developed as a potential future phase of the project.
Santos holds a 25% interest in the Barossa Caldita joint venture along with partners ConocoPhillips (37.5% and operator) and SK E&S (37.5%). Santos is also a joint venture partner in Darwin LNG with an 11.5% interest.
Offshore Energy Today Staff