ConocoPhillips takes another step towards Barossa FID with gas pipeline contract award

ConocoPhillips has awarded a gas export pipeline contract for the Barossa project offshore Australia thereby taking another big step towards a Final Investment Decision for the project slated for early next year. 

Barossa Illustration / Image source: ConocoPhillips

ConocoPhillips is the operator of the Barossa project with a 37.5% interest, Santos holds a 25% interest, and SK E&S holds the remaining 37.5%. Santos is also a joint venture partner in Darwin LNG with an 11.5% interest.

ConocoPhillips submitted an environment plan to Australian offshore safety regulator NOPSEMA to construct and install a pipeline on the Barossa field in August 2019.

Santos informed on Thursday that the contract for the engineering, procurement, construction, and installation of the 260-kilometer gas export pipeline was awarded to Allseas.

The Barossa project is currently in the front-end engineering design phase and includes a floating production, storage and offloading (FPSO) facility, subsea production system and gas export pipeline.

The gas export pipeline will tie the Barossa gas field, 300 kilometers north of Darwin, into the existing Bayu Undan to Darwin Pipeline.

Santos Managing Director and Chief Executive Officer 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 contracts 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.

Earlier this year, TechnipFMC was awarded a contract to supply the Subsea Production System for the Barossa project. TechnipFMC’s subsidiary Technip Oceania will be delivering the system and the associated SPS installation support for the project located 300 kilometers north of Darwin.

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