Barossa FID Expected in Early 2020
Santos, a partner in the Barossa offshore gas and light condensate development offshore Australia, said the project is moving toward a final investment decision (FID) early next year following operator ConocoPhillips awarding the gas export pipeline contract to Dutch contractor Allseas.
ConocoPhillips said it awarded the engineering, procurement, construction and installation (EPCI) contract for the 260-kilometer gas export pipeline to Allseas. The contract includes procurement, transportation and installation of the pipeline, as well as project management, engineering and associated services.
The Barossa project is currently in the front-end engineering design (FEED) phase and includes a ship-shaped floating production, storage and offloading facility (FPSO), subsea production system and gas export pipeline, all located in Commonwealth waters north of Darwin, Northern Territory.
ConocoPhillips is operator with 37.5% interest, and its partners are SK E&S (37.5%) and Santos (25%).
The offshore development area encompasses petroleum retention lease NT/RL5 and potential future phased development in the smaller Caldita Field to the south in retention lease NT/RL6.
The gas export pipeline will tie the Barossa gas field, 300 kilometers north of Darwin, into the existing Bayu Undan to Darwin Pipeline.
The pipeline contract follows several earlier awards for the project, including engineering, procurement and construction (EPC) of the subsea production system (SPS) awarded to TechnipFMC in May 2019. In 2018, two separate FEED contracts for the FPSO were awarded MODEC and to a consortium between TechnipFMC and Samsung Heavy Industries to be conducted as a design competition. FEED for the subsea infrastructure (umbilicals, flowlines and risers) and gas export pipeline has been awarded to INTECSEA, also in 2018.
ConocoPhillips Australia West President Chris Wilson said the latest contract award was another significant step in positioning Barossa as the leading and most advanced candidate to extend the life of the Darwin LNG facility for another two decades.
“Award of this EPCI contract will enable specific project management and engineering deliverables to be progressed prior to a final investment decision in order to meet the project schedule,” Wilson said.
“We continue to focus on strong cost discipline with all our selected contractors, developing the certainty of cost, schedule and execution planning required to compete in our global portfolio and support a final investment decision.”
Santos Managing Director and Chief Executive Officer Kevin Gallagher said, “This is another big step towards Barossa FID and follows the award of the subsea production system and installation support contract in May.”
“Evaluation of tenders for the FPSO and development drilling contracts is well progressed,” Gallagher said.