Santos starts up Barossa LNG FPSO offshore Australia

The FPSO BW Opal has received first gas from the subsea wells at the Barossa field in the Timor Sea, 285 km offshore Darwin in Australia’s Northern Territory.

Operator Santos said the vessel was now ready to start production operations.

Santos added that all the six development wells have encountered good reservoir quality, with strong flow rates from the five wells where testing has been completed. The company predicts an average potential well deliverability of around 300 MMcf/d.

And the Northern Territory Environment Protection Authority has renewed the Environment Protection Licence for Darwin LNG, enabling delivery of first gas to and start-up of the onshore complex following recent life extension activity.

The turret-moored BW Opal, operated by provider BW Offshore, has a 358-m hull and accommodation for up to 140 personnel. Its gas handling capacity is 850 MMcf/d, with a condensate handling capacity of 11,000 b/d, and storage for 805,157 bbl.

Onboard combined-cycle power generation, incorporating waste heat recovery and steam turbine technology, should reduce non-reservoir emissions by more than 50% (over 0.75MMt/r of CO₂e), Santos said, compared to the Offshore Project Proposal accepted by regulator NOPSEMA.

The Barossa LNG project is a joint venture between Santos, PRISM Energy Australia and JERA Australia. The FPSO should supply the Darwin LNG plant for the next two decades.

Last week, Santos revealed that a consortium led by ADNOC subsidiary XRG had withdrawn a non-binding, indicative proposal to acquire the company, first announced in mid-June.

Santos claimed the consortium would not agree to acceptable terms that protected the value of the potential transaction for its shareholders, nor to an obligation to secure regulatory approvals and a commitment to the development and supply of domestic gas.

“Over the past decade, our disciplined low-cost operating model has driven production costs down, strengthened the portfolio, and delivered strong free cash flow and returns for shareholders…," Santos Chairman Keith Spence said in a Sept. 18 news release. “Santos has a clear strategy, strong leadership and high-quality growth opportunities across our global portfolio. The Board is confident these strengths will deliver long-term value for shareholders.”