PERTH – ConocoPhillips Australia, as operator of the Barossa joint venture, has awarded three major engineering contracts for the front-end engineering design (FEED) phase on the Barossa offshore project.
Barossa is an offshore gas and light condensate project that proposes to provide a new source of gas to the existing Darwin LNG (DLNG) facility, subject to suitable commercial arrangements being put in place. The offshore development concept includes a floating production storage and offloading (FPSO) facility, subsea production system, and gas export pipeline, located in Commonwealth waters 300 kilometres north of Darwin. The existing DLNG infrastructure owners are assessing several options to backfill the facility from 2023 when the current offshore gas supply from Bayu-Undan is expected to be exhausted.
FEED for the FPSO facility will be conducted as a design competition between two contractor groups. Following an extensive bid process, separate FPSO FEED contracts have been awarded to MODEC and to a consortium between TechnipFMC and Samsung Heavy Industries. FEED for the subsea infrastructure (umbilicals, flowlines and risers) and gas export pipeline has been awarded to INTECSEA.
ConocoPhillips Australia West President Chris Wilson said the award of the FEED contracts represents a significant step in positioning Barossa as a leading candidate to extend the life of the DLNG facility for another two decades. “Conducting Barossa FPSO FEED as a design competition continues our focus on strong cost discipline, which enables Barossa to compete both in our global portfolio and as a leading candidate to backfill DLNG,” Mr Wilson said.
“Barossa is the first potential DLNG backfill project to progress into the FEED phase, positioning it strongly to secure access to the DLNG capacity following the end of production at Bayu-Undan. We look forward to working together with our selected FEED contractors to develop sufficient certainty of cost, schedule and execution planning to support a final investment decision (FID) at the end of 2019.”
Barossa would meet future global demand for natural gas and contribute significant income, employment and other benefits to the Northern Territory and Australia through continued operation of the DLNG facility for a further 20 plus years. The Industry Capability Network (ICN) has been engaged by ConocoPhillips to assist with Australian vendor identification for the Barossa Offshore Project. To register for potential opportunities visit www.barossaoffshore.icn.org.au
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About the Barossa Offshore Project
The Barossa joint venturers are ConocoPhillips Australia Barossa Pty Ltd (operator, 37.5%), SK E&S Australia Pty Ltd (37.5%) and Santos Offshore Pty Ltd (25.0%). The offshore development area encompasses petroleum retention lease NT/RL5 and potential future phased development in the smaller Caldita Field to the south in retention lease NT/RL6. Gas would be exported to Darwin LNG via a new export pipeline tied into the existing Bayu-Darwin Pipeline, subject to agreement with the infrastructure owners.
ConocoPhillips is the world’s largest independent E&P company based on production and proved reserves. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 17 countries, $71 billion of total assets, and approximately 11,200 employees as of March 31, 2018. Production excluding Libya averaged 1,224 MBOED for the three months ended March 31, 2018, and proved reserves were 5.0 billion BOE as of Dec. 31, 2017. For more information go to www.conocophillips.com.au
ConocoPhillips’ Australia and Timor-Leste portfolio includes the Bayu-Undan field in the Joint Petroleum Development Area of the Timor Sea, Darwin LNG facility in the Northern Territory and Australia Pacific LNG facility in Queensland as well as exploration and appraisal projects in northern Australia including CalditaBarossa, Greater Poseidon and Greater Sunrise.
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