Santos has made a final investment decision (FID) on the $4.7 billion Barossa joint venture (JV).
Located offshore the Northern Territory, Barossa will comprise a floating production, storage and offloading (FPSO) vessel, subsea production wells, supporting subsea infrastructure and a gas export pipeline tied into the existing Bayu-Undan to Darwin LNG pipeline.
Santos operates the Darwin LNG plant and the Barossa FID also commences the $788 million investment into that facility’s life extension and pipeline tie-in projects, which the company estimates will extend the life of the facility by approximately 20 years.
Darwin LNG has the capacity to produce around 3.7 million t of LNG/annum.
Santos Managing Director and CEO Kevin Gallagher said the Barossa and Darwin works would create a large number of industry jobs.
“As the economy re-emerges from the COVID-19 lockdowns, these job-creating and sustaining projects are critical for Australia, also unlocking new business opportunities and export income for the nation,” he said.
“The Barossa and Darwin life extension projects are good for the economy and good for local jobs and business opportunities in the NT.
“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 the Darwin LNG facility.
“I am delighted to welcome our Barossa JV partner SK E&S as a partner in Bayu-Undan and Darwin LNG and appreciate their support for today’s Barossa development decision.”
Santos and JERA continue to progress the binding sale and purchase agreement for JERA to acquire a 12.5 per cent interest in Barossa.
On completion of the sell-downs to SK E&S and JERA, Santos’ interests in Bayu-Undan and Darwin LNG will change to 43.4 per cent, and in the Barossa project to 50 per cent.
For more information visit the Santos website.