Santos has announced a final investment decision on the US$3.6 billion Barossa gas and condensate project offshore northern Australia, paving the way for an additional US$600 million investment in the Darwin LNG facility.

First gas production is targeted for the first half of 2025.

All major contracts have been awarded for the Barossa project's floating production, storage and offloading vessel (BW Offshore), subsea production wells (TechnipFMC), supporting subsea infrastructure (Subsea7, National Oilwell Varco, Aker Solutions) and a gas export pipeline (Allseas) tied into the existing pipeline from the Bayu-Undan field to the Darwin LNG plant.

Santos said today the Barossa and Darwin LNG life extension will create 600 jobs throughout the construction phase and secure 350 jobs for the next 20 years of production at the Darwin LNG facility.

The Barossa final investment decision will see 380 million barrels of oil equivalent resources commercialised to 2P (proven plus probable) reserves at Santos’ expected 50% interest in the project following the sell-down of 12.5% to Japan's Jera.

Santos currently has a 62.5% stake in the Barossa project with South Korea’s SK E&S on 37.5%.

The Darwin LNG life extension will involve the installation of a new tie-in point at the Bayu-Undan-to-Darwin pipeline; modifications to support Barossa gas specifications; and extending the LNG plant life to 2050.

The Darwin LNG joint ventue comprises Santos (68.4%), Inpex (11.4%), Eni (11%), Tokyo Electric and Tokyo Gas (9.2%), although SK E&S is due to complete a 25% buy-in from Santos.

Santos chief executive Kevin Gallagher said FID on Barossa was consistent with the company's strategy for disciplined growth utilising existing infrastructure around its core assets.

“Less than a year since we completed the acquisition of ConocoPhillips’ northern Australia and Timor-Leste assets and despite the global economic impact of a once-in-a-hundred-year pandemic, it is a great achievement to have extended the life of Bayu-Undan following the approval of the infill drilling program and now to have taken FID on the Barossa project."

Field Development

US$3.6bn seal of approval for Australia's Barossa project