Barossa project wins ap­proval

The Australian Energy Review - - NEWS - EL­IZ­A­BETH FABRI

CONOCO Phillips has reached a key mile­stone to­wards the de­vel­op­ment of its Barossa-caldita project af­ter re­ceiv­ing the tick of ap­proval from the off­shore petroleum reg­u­la­tor.

Barossa-caldita, a joint ven­ture be­tween oper­a­tor Conoco Phillips (37.5 per cent), San­tos (25 per cent), and SK E&S (37.5 per cent), is flagged to sup­ply back­fill gas to Dar­win LNG when Bayu Un­dan pro­duc­tion ends in the early 2020s.

Ap­proval from the Na­tional Off­shore Petroleum Safety and En­vi­ron­men­tal Man­age­ment Au­thor­ity (NOPSEMA) will al­low the Joint Ven­ture to be­gin the next stage of plan­ning, in­clud­ing the sub­mis­sion of ac­tiv­ity-spe­cific en­vi­ron­ment plans.

“Ac­cep­tance of the Off­shore Project Pro­posal (OPP) gives us a level of reg­u­la­tory com­fort and the cer­tainty we need to en­ter the Front End En­gi­neer­ing and De­sign (FEED) phase in the very near fu­ture,” San­tos man­ag­ing di­rec­tor and chief ex­ec­u­tive Kevin Gal­lagher said.

“This is one of the ma­jor reg­u­la­tory steps lead­ing to off­shore project de­vel­op­ment and petroleum pro­duc­tion, and it re­in­forces Barossa’s po­si­tion as the only gas sup­ply source ca­pa­ble of meet­ing Dar­win LNG’S timetable.”

The Wood­side-led Sun­rise project has also been a strong con­tender to sup­ply gas to Dar­win LNG but was set back by a decade-long bor­der dis­pute be­tween Aus­tralia and Ti­mor Leste.

The Barossa field, 300km north of Dar­win, will com­prise a per­ma­nently moored Float­ing Pro­duc­tion Stor­age and Of­fload­ing (FPSO) fa­cil­ity, sub­sea pro­duc­tion sys­tem, sup­port­ing in-field sub­sea in­fra­struc­ture and sub­sea gas ex­port pipe­line.

Conoco Phillips said the ex­pected liq­ue­fied nat­u­ral gas (LNG) and con­den­sate pro­duc­tion rates were about 3.7 mil­lion tonnes per an­num and 1.5 mil­lion bar­rels per year, re­spec­tively, over a 25-year op­er­at­ing life.

A Fi­nal In­vest­ment De­ci­sion was ex­pected in 2019, with first gas to be de­liv­ered in 2023.

Im­age: Conoco Phillips.

The Barossa project lo­ca­tion.

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