30/10/2019 - 12:36

Modec wins key Barossa work

30/10/2019 - 12:36

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Modec International has been selected to build a floating production platform for the Barossa gas project, beating a consortium of Technip and Samsung, with gas to be piped to backfill the Darwin LNG plant.

Modec wins key Barossa work
ConocoPhillips is currently the operator of the Barossa project. Photo: Attila Csaszar

Modec International has been selected to build a floating production platform for the Barossa gas project, beating a consortium of Technip and Samsung, with gas to be piped to backfill the Darwin LNG plant.

ConocoPhillips announced the engineering, procurement, construction and installation contract for the floating production, storage and offloading today.

The FPSO will be approximately 354 metres in length and 64 metres wide, weighing 34,400 tonnes and with space for 140 staff.

The announcement comes two weeks after Santos agreed to buy ConocoPhillips’ assets in northern Australia, a deal worth $1.4 billion.

Santos holds 25 per cent of Barossa and 11.5 per cent of Darwin LNG.

Once the transaction is completed and Santos sells down part of its stake to SK E&S, the company will hold 43.4 per cent of Darwin LNG, 43.4 per cent of the Bayu-Undan field and 62.5 per cent of the Barossa project.

“This is the largest and most significant contract to be awarded for the Barossa project and a significant milestone in moving closer to a final investment decision in early 2020,” ConocoPhillips Australia-West president Chris Wilson said. 

“It is a testament to the hard work by our project team and major contractors following the successful completion of the front-end engineering and design effort.

“Final investment decision is progressing according to plan while we continue working collaboratively with Santos to finalise transitional arrangements and close the sale of our Australia-West assets.”

Santos chief executive Kevin Gallagher said the contract was the result of a FEED competition and the award was the biggest step yet towards undertaking the development.

“The project is technically and commercially robust, and we are closing in on FID early in the new year, with contracts for the subsea umbilicals, flowlines and drilling of six subsea production wells to be awarded in the near future,” Mr Gallagher said.

A number of other contractors have won work on Barossa, led by Allseas Marine Contractors Australia for engineering, procurement and construction of the export pipeline from the FPSO back to Darwin.

US-based Oil States Industries will provide structural casings, DNV GL Australia will undertake validation work, and Japanese Marubeni-Itochu Tubulars Oceania will provide drill pipes and production tubes.

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