Barossa

Barossa Offshore Development Project Profile

Location and Geology

The Barossa project is located in the Bonaparte Basin of the Timor Sea, offshore Australia, approximately 300 kilometers north-northwest of Darwin in the Northern Territory. The field is situated within petroleum permit NT/RL5 in Commonwealth waters, at a water depth ranging between 130 meters and 350 meters.

Project Overview

The Barossa project is a gas and condensate field development aimed at providing a new source of natural gas to the existing Darwin LNG (DLNG) facility. The project involves the development of the Barossa field, along with the nearby Caldita field, under the Barossa offshore development project.

Ownership and Partners

The project is operated by Santos, an Australian oil and gas company, which holds a 50% working interest. Other partners include SK E&S, a Korean energy company, with a 37.5% interest, and JERA, a Japanese power company, holding the remaining 12.5% interest.

Development Details

• Infrastructure: The project will utilize a permanently moored Floating Production Storage and Offloading (FPSO) facility, a subsea production system, supporting in-field subsea infrastructure, a gas export pipeline, and the Darwin Pipeline Duplication (DPD).
• Wells: Up to eight subsea wells are planned, with six wells positioned across three drill centers and contingency measures for an additional two wells. The wells will be drilled to extract gas and condensate, which will be transported to the FPSO via subsea infrastructure.
• Processing and Export: Initial processing will occur at the FPSO, where natural gas, water, and condensate will be separated. The dry natural gas will be transported via the gas export pipeline to the existing DLNG facility in Darwin for further processing. Condensate will be transferred from the FPSO to dedicated tankers for export.

Contractors and Subcontractors

• FPSO: BW Offshore secured a ten-year lease to operate the Barossa FPSO, handling engineering, procurement, construction, installation, and operation. Subcontractors include SK Oceanplant for hull fabrication, NOV APL for the submerged turret production system, Dyna-Mac Engineering for topside modules, and FG Industry for detailed engineering.
• Subsea Infrastructure: Subsea 7 manages the transportation and installation of subsea infrastructure. Allseas, along with Van Oord and DEME, is involved in the engineering, procurement, transport, and installation of the gas export pipeline, as well as trenching and pipe pull operations.
• Other Contractors: Additional contractors include Worley, Mitsui E&S, Samsung Heavy Industries, and TechnipFMC for design and FEED engineering; Aker Solutions, NOV, SK Oceanplant, Dyna-Mac Holdings, and Macquarie Infrastructure and Real Assets Fund for main EPC; and Jacobs Solutions, ABB, Fugro, Honeywell International, and Connector Subsea Solutions for various other services.

Timeline and Milestones

• Appraisal: The field was appraised through several wells, including Barossa-2, Barossa-3, Barossa-4, Barossa-5, and Barossa-6, which confirmed the reservoir's potential and provided critical data for field development planning.
• FEED Phase: The Front-End Engineering Design (FEED) phase began in April 2018 and continued until the end of 2019.
• Final Investment Decision (FID): The FID was made in March 2021, with an investment of $3.6 billion (later reported as $4.5 billion).
• Current Status: The project is approximately 77-80% complete, with first gas expected in the third quarter of 2025. The gas export pipeline has been installed, and the FPSO integration and pre-commissioning work are ongoing.

Environmental and Regulatory Aspects

• Approvals: The proposal for the development was accepted by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) in March 2018. However, there were legal challenges in 2022 related to consultation with indigenous communities, which led to a temporary halt in operations. In February 2024, NOPSEMA approved the new development drilling and completions environment plan, allowing work to continue.
• Community Consultation: Significant hurdles included ensuring proper consultation with the Tiwi Islander community, whose waters have religio-cultural and spiritual significance. Further consultation was conducted under regulator and court guidelines.

Production and Economic Impact

• Production: The project is expected to produce approximately 3.7 million tonnes of liquefied natural gas (LNG) and 1.5 million barrels of condensate annually. Production is forecast to peak in 2026 and continue until the field reaches its economic limit in 2049.
• Economic Benefits: The project will contribute significantly to the income and employment in the Northern Territory and Australia, enabling the continued operation of the DLNG facility for over 20 years.

Technical Specifications

• Water Depth: The field is located in water depths between 130 meters and 350 meters.
• Reservoirs: The wells have encountered net pay in the Upper Elang, Lower Elang, and Plover reservoirs.
• Pipeline: A 262-kilometer gas export pipeline has been installed, tied into the existing Bayu-Undan to Darwin pipeline.

The Barossa project is a significant development in the Australian oil and gas sector, aimed at securing a long-term supply of natural gas and contributing to the economic and energy security of the region.