As a result of FID, it also kick-starts the $US600 million investment in the Darwin LNG life extension and pipeline tie-in projects, which will extend the facility life for around 20 years.
The Santos-operated Darwin LNG plant has the capacity to produce 3.7 million tonnes of LNG per annum.
Managing director and chief executive officer Kevin Gallagher said the FID on Barossa was consistent with Santos’ strategy foe disciplined growth utilising existing infrastructure around the company’s core assets.
“Our strategy to grow around our five core asset has has not changed since 2016. As we enter this next growth phase, we will remain disciplined in managing our major project costs, consistent with our low-cost operating model,” Gallagher said.
In addition, last weekend the company awarded BWO with the project’s major contract for the construction, connection and operation of its floating production, storage and offloading vessel (FPSO).
The FPSO services contract is subject to a final investment decision (FID) and represents the largest capital expenditure component of the $US3.6 billion Barossa offshore gas and condensate project to backfill Darwin LNG.
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 prior to its transport via pipeline to Darwin LNG.
Gallagher further highlighted that the Barossa and Darwin LNG life extension will create 600 jobs throughout the construction phase and secure 350 jobs for the next 20 years of production at Darwin LNG.
Barossa is set to be one of the lowest cost, new LNG supply projects in the world and will give Santos and Darwin LNG a competitive advantage in the LNG global market.
The development will comprise a FPSO vessel, subsea production wells, supporting subsea infrastructure and a gas export pipeline tied into the existing Bayu-Undan to Darwin LNG pipeline.
First production is targeted for the first half of 2025.