Carnarvon and Santos focus on offshore gas and liquids expansion
Key highlights:
- Santos marked a key step toward Barossa LNG startup as first cargo reached Darwin, even as commissioning hiccups delayed ramp‑up, while the company advanced a slate of offshore gas and liquids growth options across Australia.
- Carnarvon is laying the groundwork for a 2027 drilling restart in the Bedout sub-basin, advancing rig tenders and environmental approvals as newly reprocessed seismic sharpens the upside at the Dorado and Pavo oil and gas discoveries.
Barossa LNG nears startup as commissioning delays temper ramp‑up and Australian gas output rises
The first cargo of LNG from the Barossa gas field in the Timor Sea is unloading at the Darwin LNG terminal in Australia’s Northern Territory, according to Santos Ltd.'s latest quarterly report.
Project operator Santos has been continuing commissioning activities on the 850,000-MMcf/d BW Opal FPSO, following drilling and completion of the previously suspended fourth production well. The MS1 drilling rig has since departed from the field.
Average potential deliverability per well has been ~300 MMcf/d, with testing completed on all six wells.
However, there were two connection failures on the FPSO’s utilities and firewater mains GRE pipework systems, which led to strengthening of all similar connections across the platform.
The program caused a two-month delay to the production ramp-up schedule, Santos said in the trading update, but it should support higher reliability operations over the longer term.
At the nearby depleted offshore Bayu-Undan gas field, the company completed the planned well suspension scope in December.
Offshore Western Australia, Santos’ domestic gas production rose 15% last year, in part due to the Halyard-2 infill well exceeding expectations. Preparations finished for removal of the Harriet Alpha Platform, with the contractor now mobilizing resources to the location for the removal campaign.
Carnarvon advances rig tenders and seismic-led prospectivity ahead of planned 2027 Bedout drilling
Santos also operates the Dorado and Pavo discoveries in the Bedout sub-basin offshore Western Australia. The company and its partners, including Carnarvon Energy, plan to resume exploration drilling in the area during the first half of 2027.
Tender processes are advancing for securing a drilling rig, said Carnarvon in its own update, and work continues on procuring long-lead equipment items and the multi-well environment plan.
Drilling will target additional gas resources in the northern play fairway that could support a future offshore gas export development, alongside liquids production from the resources already proven.
The recently completed Bedout Mega Merge seismic reprocessing project has improved subsurface resolution across more than 15,000 sq km within the basin, Carnarvon added. Recent interpretation of the results has led to identification of potential structural and stratigraphic features not previously detected.
Dorado, 150 km offshore and in 90 m of waters, is one of Australia’s largest undeveloped oil and gas fields. Santos suspended development work early last year to allow for further exploration in the area before committing to a final investment decision.
Current plans call for a phased project, initially focused on the liquids with production from a single wellhead platform with up to 12 wells, connected to an FPSO.
About the Author
Jeremy Beckman
Editor, Europe
Jeremy Beckman has been Editor Europe, Offshore since 1992. Prior to joining Offshore he was a freelance journalist for eight years, working for a variety of electronics, computing and scientific journals in the UK. He regularly writes news columns on trends and events both in the NW Europe offshore region and globally. He also writes features on developments and technology in exploration and production.