Australia’s Santos said the subsea production system (SPS) deal for the Barossa project has been awarded, strengthening the project’s position as the leading candidate for Darwin LNG (DLNG) backfill.
Following a competitive tender, Technip Oceania was the successful bidder to supply the SPS.
The engineering, procurement and construction (EPC) contract represents a commitment to long-lead items in advance of a final investment decision, Santos said in its statement.
The contract includes the engineering, design and fabrication of wellheads, manifolds and control system as well as installation and commissioning assistance.
Santos managing director and CEO Kevin Gallagher said, “this is the first EPC contract to be awarded for Barossa and a big vote of confidence in its position as the leading project to backfill DLNG.”
He added that Santos is making good progress in the front-end engineering and design (FEED) phase including the evaluation of bids for the gas export pipeline.
“We are also looking at technical proposals for the floating production storage and offloading facility from both MODEC and the Technip/Samsung Heavy Industries consortium,” Gallagher said, adding that “an invitation to tender for the development drilling contract has also been released, further advancing the project to meet DLNG’s backfill timetable.”
Barossa’s development will more than double Santos’ Northern Australia production based on the company’s higher equity position in the project.
The Barossa gas field, 300 kilometers north of Darwin, sits within Santos’ Northern Australia portfolio, one of the company’s five core long-life, natural gas assets.
The Barossa development entered FEED in April last year and is targeting FID in early 2020.
Santos holds a 25 percent interest in the Barossa Caldita joint venture along with partners ConocoPhillips (37.5 percent and operator) and SK E&S (37.5 percent). Santos is also a joint venture partner in DLNG with an 11.5 percent interest.