Santos has taken a final investment decision (FID) on the US$3.6bn Barossa gas and condensate project, located offshore the Northern Territory (Australia). The Barossa project will include 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 expects first gas production for the first half of 2025. Gas production will be processed through Darwin LNG and Santos has already signed a long-term LNG agreement with Diamond Gas International (100% Mitsubishi) for 1.5 Mt/year of LNG with extension options.
Barossa FID is the final condition required to complete the 25% equity sell-downs in Darwin LNG and Bayu-Undan to SK E&S, which is also a partner in Barossa. JERA should acquire a 12.5% stake in Barossa from Santos. Completion of the transactions with SK E&S and JERA will see Santos’ interests in Bayu-Undan and Darwin LNG change to 43.4%, and in the Barossa project to 50 %.
Santos has also announced that it would invest US$600m in the life extension and pipeline tie-in projects at the 3.7 Mt/year Darwin LNG. The projects will extend the life of the liquefaction plant for around 20 years.