LNG

UK-based engineering firm Wood Plc has been chosen as lead consultant for an independent study of the next big potential Asia-Pacific LNG export project, the Greater Sunrise Development using gas resources from the Timor Sea.

The natural gas drilling programme in the Timor Sea to increase available feed gas for the Australian Darwin LNG export plant from the Bayu-Undan gas field joint venture has produced better than expected results for the six energy company shareholders and the tiny Asia-Pacific state of Timor-Este.

Australian LNG operator Santos has taken a positive final investment decision to proceed with the offshore Barossa natural gas field joint venture to provide new feed gas for the Darwin LNG plant supplying Japan.

Australian LNG plant operator Santos has awarded contracts to European firms for the supply and installation of subsea infrastructure for the Barossa natural gas field that will provide future feed-gas for the Darwin LNG export plant in the Northern Territory.

Santos, operator of the Gladstone LNG plant in Queensland and with stakes in Darwin LNG and the Papua New Guinea plant, said these contract awards were the final commitment made prior to the final investment decision for the Barossa project.

The contract for the transport and installation of all the subsea umbilicals, risers, and flowlines, as well as the supply of the in-field flowlines, was awarded to European firm Subsea 7, while Aker Solutions of Norway will supply the umbilicals and National Oilwell Varco Denmark I/S will supply the flexible risers.

“These are the final major facilities contracts for Barossa as we get closer to pushing the button on the project’s development in the second quarter,” said Santos Chief Executive Kevin Gallagher.

“They follow the award of the floating production, storage and offloading  (FPSO) unit, subsea wells and subsea production system, and gas export pipeline tenders, with the contract for the drilling of the production wells to be awarded in the near future,” explained Gallagher.

“They represent the final stages of the front-end engineering design phase and give us greater certainty over cost and schedule for the Barossa development,” stated the CEO of the Adelaide-based company.

The Barossa project area encompasses petroleum permit NT-RL5 located in Commonwealth waters, 300 kilometres north of Darwin, offshore the Northern Territory.

The development concept consists of an FPSO, six subsea production wells, supporting in-field subsea infrastructure and a gas export pipeline tied into the existing Bayu-Undan-to-Darwin pipeline, supplying gas to Darwin LNG.

On 14th October 2019, Santos announced the acquisition of Australian assets from ConocoPhillips in northern Australia.

These included the Timor-Leste portfolio including its interests in Darwin LNG and the Bayu-Undan and Barossa gas fields. 

Completion of the transaction and the planned sell-down to SK E&S of South Korea will leave Santos with increased stakes in these assets amounting to 43.4 percent for Darwin LNG, 43.4 percent for Bayu-Undan and 62.5 percent of the Barossa field.

Santos has said it was prepared to sell down equity in Barossa to a target ownership of 40-50 percent to achieve increased partner alignment. 

Australia energy company Santos, a shareholder in three LNG export plants, reported record annual free cash flow and a rise in profits even amid lower prices, offset by a slowdown in marketing in Asia because of coronavirus.

Australian and Japanese energy companies along with US major ConocoPhillips have signed accords linked to legislation implemented by Australia for a treaty with the tiny southeast Asian nation of Timor-Leste to establish their maritime boundaries in the Timor Sea off northwest Australia.

Asia-Pacific LNG stakeholder Santos said it made further progress on the front-end engineering and design phase of the Barossa offshore project with the award of three major engineering contracts to continue supplying feed-gas to the Darwin LNG plant, operated by partner ConocoPhillips since 2006.

ConocoPhillips and its partners have received positive results from the two-well appraisal drilling campaign in the Barossa field, part of the Bonaparte Basin offshore Australia’s Northern Territory strengthening the field’s position as lead candidate to supply backfill gas to the Darwin LNG plant.