PERTH (miningweekly.com) – Australian oil and gas major Santos and its joint venture (JV) partners have advanced the Barossa project to the front-end engineering and design (FEED) phase of development.

FEED activities will involve engineering and commercial work, aimed at finalising the project’s technical detail, cost, liquefied natural gas (LNG) sales agreements and negotiation of access arrangements with the owners of the Darwin LNG project and the Bayu-Undan to Darwin gas pipeline.

“The Barossa FEED decision consolidates its position as the leading candidate for Darwin LNG backfill when Bayu-Undan production ceases in the early 2020s,” Santos MD and CEO Kevin Gallagher said.

“It’s a great step forward for Santos because our higher equity position means that a successful Barossa development would more than double our current production out of northern Australia.”

Barossa’s development would extend the operating life of the Darwin LNG project for more than 20 years, and would help supply growing demand for natural gas in Asia, while also providing significant jobs and business opportunities in the Northern Territory, said Gallagher.

The Barossa development concept consists of a floating production, storage and offloading (FPSO) facility, six subsea production wells that will be drilled in the initial phase, supporting in-field subsea infrastructure and a gas export pipeline tied to the existing Bayu-Undan to Darwin pipeline.

A final investment decision on the project is targeted towards the end of 2019, with contracts for field surveys and engineering for the FPSO, subsea facilities and export pipeline to be awarded soon.

The Barossa gasfield, some 300 km north of Darwin, lies within Santos’ Northern Australia portfolio. Santos holds a 25% interest in the Barossa-Caldita JV, along with partners ConocoPhillips and SK E&S.