Santos has reached an agreement to sell a 12.5% interest in the Barossa project to an Australian subsidiary of JERA, which is an existing partner in Darwin LNG with a 6.1% interest.
Located in the Bonaparte Basin of the Timor Sea offshore Australia, the Barossa project comprises 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 Managing Director and CEO Kevin Gallagher said he was delighted welcome JERA as a partner in the Barossa project.
“JERA is a long-standing partner and customer at Darwin LNG. We are delighted to have finalised our agreement with JERA consistent with the terms of the Letter of Intent that was agreed shortly after the announcement of the acquisition of ConocoPhillips’ interests in Barossa,” Mr Gallagher said.
“I welcome JERA as a partner in the Barossa project and look forward to continuing to build on the important long-term relationship between our two companies.”
JERA Corporate Vice President and Managing Executive Officer Yukio Kani said Barossa “is a good LNG investment in Australia for the company at this time”.
“JERA is keen to partner with quality Australian and international partners like Santos and SK E&S, and our investment decision-making processes reflect decades of experience in the international LNG market,” he said.
Santos, as operator of the Barossa joint venture, announced a final investment decision for the Barossa project in March 2021.
According to the company’s statement, the project is progressing on schedule and budget for first LNG in the first half of 2025.