The National Offshore Petroleum Titles Administrator (NOPTA) has approved Santos’ application for a production licence for the Barossa field offshore Northern Territory.
Santos’ application for the licence (NT/L1) was made in late March, replacing the company’s former retention license. It contains 10 blocks with a total area of 841km2.
Adelaide-based Santos reported in March that it would defer a final investment decision (FID) on the Barossa liquefied natural gas (LNG) project due to the uncertain economic impact of COVID-19, combined with the lower oil price.
However, Santos chief executive officer and managing director Kevin Gallagher said Barossa would remain an important project for the company due to its brownfield nature and its low cost of supply.
“We will continue to use this time to achieve alignment and seek to further strengthen the economics of the project,” Gallagher said at the time.
The Barossa project concept includes a floating production storage and offloading (FPSO) facility, subsea production system, supporting in-field subsea infrastructure and a gas export pipeline. The FPSO facility will separate the natural gas and condensate extracted from the field with the dry gas transported via the export pipeline for onshore processing.
For more information subscribe to PPO.