Santos has awarded Allseas Group with a contract for the gas export pipeline for the Barossa gas project located offshore Darwin.
The announcement takes Santos a major step closer towards a final investment decision (FID), expected to be made early next year.
Allseas’ contract scope will include the engineering, procurement, construction and installation of the 260 kilometres gas export pipeline from the project.
Barossa is currently in the front-end engineering design phase and includes a floating production, storage and offloading facility (FPSO), subsea production system and gas export pipeline.
The gas export pipeline will tie the Barossa gas field, 300 kilometres north of Darwin, into the existing Bayu Undan to Darwin Pipeline.
Santos managing director Kevin Gallagher said: “This is another big step towards Barossa FID and follows the award of the subsea production system and installation support contract in May. Evaluation of tenders for the FPSO and development drilling contract is well progressed.”
The Barossa field sits within Santos’ northern Australia portfolio, one of the company’s core long-life, natural gas asset regions. The project area encompasses petroleum permit NT/RL5 located in Commonwealth waters offshore Northern Territory.
Santos holds a 25 per cent interest in the Barossa joint venture along with partners ConocoPhillips who are a 37.5 per cent and operator and SK E&S who also have a 37.5 per cent interest.
The company is also a joint venture partner in Darwin LNG with an 11.5 per cent interest.