19/06/2018 - 14:59

Contracts awarded for Barossa gas project

19/06/2018 - 14:59

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ConocoPhillips has set up a design competition between two engineering groups led by Technip Oceania and MODEC for the key facilities at its Barossa gas project in the Timor Sea while WorleyParsons subsidiary Intecsea has been awarded a separate contract for subsea infrastructure.

Two of the contracts are for a floating production storage and offloading facility.

ConocoPhillips has set up a design competition between two engineering groups led by Technip Oceania and MODEC for the key facilities at its Barossa gas project in the Timor Sea while WorleyParsons subsidiary Intecsea has been awarded a separate contract for subsea infrastructure.

The front-end engineering design (Feed) contracts for the planned floating production storage and offloading (FPSO) facility have been awarded to a consortium of Technip and Samsung Heavy Industries and to Modec.

ConocoPhillips has a 37.5 per cent interest and is operater of the Barossa project, located 300 kilometres north-west of Darwin.   

The project is aiming to provide a new source of gas to its existing Darwin LNG (DLNG) facility, subject to suitable commercial arrangements being put in place.

Santos has a 25 per cent stake in the gas field, while SK E&S also holds a 37.5 per cent interest.

ConocoPhillips Australia West president Chris Wilson said the award of the contracts represents a significant step for the project.

“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,” he said.

Santos managing director Kevin Gallagher said the contracts highlighted the strength of the project.

“Barossa would more than double Santos’s production in northern Australia and significantly increase our portfolio LNG production from early 2024 when strong, unfulfilled LNG demand is expected,” he said.

“The award of the Feed contracts is another big step towards ensuring Barossa replaces Bayu-Undan production when it ceases in the early 2020s.”

A final investment decision on the project is expected towards the end of 2019.

 

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