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Major Barossa contract awarded

MODEC International has won the project’s biggest contract, with the FPSO works comprising engineering, procurement of materials, equipment and services, construction, installation, commissioning and testing of the facility.

The Barossa field is located 300 km north of Darwin and is being developed as a means of ensuring future gas supply to the Darwin LNG facility after the Bayu-Undan offshore fields run dry sometime in the next decade.

ConocoPhillips holds a 37.5 per cent interest and operates the development with JV partners Santos (25 per cent) and SK E&S (37.5 per cent) making up the remaining equity stake; however, last month, Santos announced it would be acquiring ConocoPhillips’ northern Australia portfolio, including its interests in Barossa, Darwin LNG and Bayu-Undan.

The Barossa project will include an FPSO facility, subsea wells, subsea production system and a new 260 km gas export pipeline tied into the existing Bayu-Darwin pipeline; Santos Managing Director and CEO Kevin Gallagher said this award was the biggest step yet towards developing this asset.

“The project is technically and commercially robust, and we are closing in on a final investment decision early in the new year, with contracts for the subsea umbilicals, flowlines and drilling of six subsea production wells to be awarded in the near future,” said Mr Gallagher.

MODEC President and CEO Yuji Kozai said the company was proud to be awarded the contract, which would be its sixth FPSO in Australia.

“This new contract represents a significant milestone for MODEC in applying our next generation new built FPSO hull design of which we have developed to meet the new market demands for larger FPSOs,” he said.

Once its acquisition is completed, Santos will have a 43.4 per cent interest in both Darwin LNG and Bayu-Undan and a 62.5 per cent interest in Barossa.

Barossa is located in petroleum permit NT/RL5 situated in Commonwealth waters.

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