Name of the Project
Barossa project to backfill Darwin liquefied natural gas (DLNG) plant.

Location
The project is located 300 km north of Darwin, within Santos’ Northern Australia portfolio, one of the company’s core long-life, natural gas assets.

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.

Project Owner/s
Oil and gas major Santos currently holds a 62.5% operating interest in the Barossa joint venture (JV), along with partner SK E&S (37.5%). Santos is also a JV partner and operator in DLNG, with a 68.4% interest.

Project Description
The Barossa development comprises a floating production storage and offloading facility (FPSO), with six subsea production wells to be drilled in the initial phase, and supporting in-field subsea infrastructure and a gas export pipeline tied into the existing pipeline between Bayu-Undan and Darwin.

Barossa’s development will extend the operating life of the DLNG plant by more than 20 years.

Potential Job Creation
Not stated.

Capital Expenditure
In March 2021, Santos reported that it had cut about $1-billion in expected capital expenditure from the project, as a result of significant financial savings and energy efficiency improvements through extensive and intensive contract reviews.

Planned Start/End Date
The project aims to provide gas for the DLNG plant after the Bayu-Undan reservoir ceases production after 2022. A final investment decision on Barossa is expected shortly, with first gas targeted for the first half of 2025.

Latest Developments
Santos has awarded a construction, connection and operation contract – subject to a final investment decision on the Barossa project – for the FPSO to international vessel builder and operator BW Offshore.

The contract represents the biggest capital expenditure component for the Barossa JV and contains an upfront prepayment and buy-out option, achieving an overall reduction of about $1-billion in capital expenditure on the original figure.

“This reduction in capital expenditure makes Barossa one of the lowest cost of supply projects in the world for LNG and will provide new supply for a tightening LNG market,” Santos MD and CEO Kevin Gallagher has said.

The FPSO will be built in South Korea and Singapore before being towed and permanently located in the field, where it will process natural gas before the gas will be transported by pipeline to Darwin LNG.

Santos is in the midst of selling a 12.5% interest in Barossa to Darwin LNG partner JERA, and has a binding agreement to sell a 25% interest in the Bayu-Undan and Darwin LNG projects to SK E&S, subject to a final investment decision on Barossa.

Key Contracts, Suppliers and Consultants
MODEC and a consortium between TechnipFMC and Samsung Heavy Industries (FPSO) and INTECSEA (subsea infrastructure); Allseas Group (engineering, procurement, construction and installation of the gas export pipeline); and BW Offshore (construction, connection and operation contract for the FPSO).

Contact Details for Project Information
Santos media enquiries Joanna Vaughan, tel +61 2 9276 1134 or email joanna.vaughan@santos.com; or investor enquiries Andrew Nairn, tel +61 8 8116 5314 or email andrew.nairn@santos.com.