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Barossa contracts secured

Separate engineering contracts for the floating production storage and offloading (FPSO) facility have been awarded to MODEC and a consortium between TechnipFMC and Samsung Heavy Industries, with a design competition to be conducted between the two groups.

A third contract, for the subsea infrastructure including umbilicals, flowlines, risers and gas export pipeline, has been awarded to INTECSEA.

“These contracts reaffirm Barossa’s position as the leading candidate for Darwin LNG backfill, with no alternative projects in the FEED phase,”? said Santos Managing Director and CEO Kevin Gallagher.

“Barossa would more than double Santos’ production in northern Australia and significantly increase our portfolio LNG production from early 2024 when strong, unfulfilled LNG demand is expected.

“The award of the FEED contracts is another big step towards ensuring Barossa replaces Bayu-Undan production when it ceases in the early 2020s.”?

The Barossa development concept includes an FPSO, six subsea production wells to be drilled in the initial phase, subsea production system, supporting in-field subsea infrastructure and a gas pipeline to Darwin, all located in Australian Commonwealth waters.

“An FPSO design competition between leading engineering contractors with experience in the Australian market will ensure a robust, cost competitive package is delivered ahead of a final investment decision,”? said Mr Gallagher.

“Other FEED works are also moving ahead with geotechnical and geophysical surveys of the pipeline route and subsea manifold locations currently underway in the field.”?

A final investment decision is targeted towards the end of 2019.

Santos holds a 25 per cent interest in the Barossa-Caldita JV along with partners ConocoPhillips (37.5 per cent and operator) and SK E&S (37.5 per cent).

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