Barossa JV Secures Exclusivity for Darwin LNG Backfill
Australian Santos June 27 announced that the Barossa joint venture has entered into exclusive negotiations with the Darwin LNG joint venture for the supply of backfill gas.
“The arrangement gives the Barossa JV an exclusive commercial negotiation period to reach a processing services agreement as well as settle on a tariff in anticipation of a final investment decision early next year,” Santos said.
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The Barossa project entered the front-end engineering and design (Feed) phase of development in April last year, and last month announced the contract to supply the subsea production system (SPS) and associated SPS installation support.
"Bids have also been received and are being evaluated for the FPSO, gas export pipeline and development drilling. We're getting on with the job," Santos CEO Kevin Gallagher said.
The Barossa gas field, 300 km north of Darwin, sits within Santos' Northern Australia portfolio. The project area encompasses petroleum permit NT/RL5 and, with future phased- development in the Caldita field to the south, petroleum permit NT/RL6, Santos said.
Santos holds a 25% interest in the Barossa-Caldita joint venture along with partners ConocoPhillips (37.5% and operator) and South Korean SK E&S (37.5%). Santos is also a joint venture partner in Darwin LNG with an 11.5% interest.