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Santos hands out final major Barossa contracts

Santos has awarded the last major contracts for the Barossa project offshore Darwin in the Barossa field to Subsea 7, Aker Solutions and National Oilwell Varco Denmark I/S.

Subsea 7 will complete the transport and installation of all subsea umbilicals, risers, flowlines and supply in-field flowlines under its contract.

Aker Solutions meanwhile, will supply the umbilicals, while National Oilwell Varco Denmark I/S will supply the flexible risers.

Santos managing director and chief executive officer Kevin Gallagher said the appointment of these contracts was pushing the company closer to the Barossa project’s development in the second quarter.

“These are the final major facilities contracts for Barossa,” Gallagher said.

“They follow the award of the floating production storage and offloading (FPSO) facility, subsea wells and subsea production system, and gas export pipeline tenders, with the contract for the drilling of the production wells to be awarded in the near future.

“They represent the final stages of the front-end engineering design phase and give us greater certainty over cost and schedule for the Barossa development.”

Barossa consists of a FPSO development, six subsea production wells, supporting in-field subsea infrastructure and a gas export pipeline.

This ties into the existing Bayu-Undan to Darwin pipeline which supplies gas to Darwin liquefied natural gas (LNG).

Santos holds a 25 per cent interest in the Barossa joint venture, with its partners, operator ConocoPhillips (37.5 per cent interest) and SK E&S (37.5 per cent).

It gained interest in the project last October, when it acquired ConocoPhillips’ northern Australia and Timor-Leste portfolios, including its interests in Barossa, Darwin LNG and Bayu-Undan.

Santos has stated it is prepared to sell down its Barossa equity to a target ownership of 40 to 50 per cent in the future, to achieve increased partner alignment.

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