Santos announces Barossa FPSO contract award

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Barossa joint venture operator Santos has awarded a contract for the construction, connection and operation of the Project’s Floating Production, Storage and Offloading vessel (FPSO).

Barossa is an offshore gas and light condensate project being progressed by the Barossa Joint Venture comprising Santos and SK E&S Australia Pty Ltd.

The project proposes to provide a new source of gas to the existing Darwin LNG facility once current reserves from the Santos-operated Bayu-Undan field in the Timor Sea have been depleted.

Santos said the FPSO services contract was awarded to international vessel builder and operator BW Offshore (BWO).

Subject to a final investment decision (FID) on Barossa, the contract represents the largest capital expenditure component of the approximately US$3.6 billion Barossa offshore gas and condensate project to backfill Darwin LNG.

“The decision to proceed with an FPSO services contract maintains a low ongoing operating cost while engineering enhancements have significantly reduced the project’s carbon footprint,” said Santos Managing Director and Chief Executive Officer Kevin Gallagher

“This reduction in capital expenditure makes Barossa one of the lowest cost of supply projects in the world for LNG and will provide new supply into a tightening LNG market.”

The FPSO will be built in South Korea and Singapore before being towed and permanently located in the field where it will process natural gas prior to its transport via pipeline to Darwin LNG.

Santos, which currently holds a 62.5% operated interest in the Barossa JV, said a final investment decision on the project is anticipated in the coming weeks with first gas targeted for the first half of 2025.

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