Australian operators Woodside and Santos have reaffirmed their commitments to making final investment decisions this year on the Scarborough and Barossa offshore projects, promising combined capital spending of up to US$15 billion.

Both companies filed strong fourth-quarter results today, with Woodside delivering quarterly production of 24.9 million barrels of oil equivalent and Santos fractionally more at 25.4 million boe.

Santos reiterated that a final investment decision on the Barossa project to backfill the Darwin LNG facility is targeted for the first half of 2021.

Barossa is targeting a cash cost of production of US$2.00 per million British thermal units. and capital spend of US$3.6 billion gross including a leased FPSO with upfront pre-payment and an option to buy-out.

Chief executive Kevin Gallagher said: “Significant milestones were achieved on the Barossa project during the fourth quarter, including the signing of a binding long-term LNG offtake agreement with Mitsubishi at a price based on JKM and execution of the gas transportation and processing agreements with Darwin LNG. Consents were also received for our sell-downs to SK E&S. Barossa is on-track for a final investment decision in the first half of 2021."

Woodside too said today the US$11 billion-plus Scarborough and Pluto train two investment is on schedule for the second half this year subject to commercial arrangements and joint venture and regulatory approvals.

Chief executive Peter Coleman said: “Our teams delivered significant progress on our growth projects during the fourth quarter. Production licences were awarded for the processing of Scarborough gas through an expanded Pluto facility and we remain on track for a targeted final investment decision on the development in the second half of this year.

“In another sign of market support for Scarborough, we have recently doubled the volume of gas to be supplied to Uniper from 2021 under our existing binding long-term sale agreement."

Field Development

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