Step forward for Barossa gas project

Plans to use the Barossa gas field in the Timor Sea as backfill for the Darwin LNG plant received a boost today, with the project getting a tick of approval from the National Offshore Petroleum Safety Authority.

It follows a two-well appraisal campaign of the field in the past year, with front end engineering to begin soon.

A final investment decision is due in late 2019.

The Barossa project, which also includes the nearby Caldita field, would be used as backfill at Darwin when the existing Bayu-Udan field reaches the end of its life in the early 2020s.

It is located about 300 kilometres north of Darwin.

The approval announced today means Nopsema has assessed environmental risks of the project over its proposed 25-year life, although activity specific environmental plans will still be needed as the projects progress.

Santos holds a 25 per cent interest in the Barossa-Caldita joint venture.

The two partners are operator ConocoPhillips and South Korean company SK E&S, both of which hold 37.5 per cent stakes.

Santos chief executive Kevin Gallagher said the approval gave a level of regulatory comfort and certainty to enter front end engineering in the near future.

“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” he said.  

One other potential candidate for Darwin LNG backfill is the Greater Poseidon project.

For that venture, Conoco and Origin Energy both hold 40 per cent while PetroChina has the remaining 20 per cent slice.

That project is in the Browse Basin and includes the Kronos field.

Conoco has a majority share in Darwin LNG, with Inpex, Santos, Eni, JERA and Tokyo Gas holding stakes.