Santos Ltd mentioned Monday Darwin LNG’s new supply area is now producing pure fuel and that the liquefaction facility had obtained reauthorization from Australia’s Northern Territory.
“Santos can be happy to report that every one six wells drilled within the Barossa fuel area have intersected glorious reservoir high quality”, the Australian firm mentioned in a press launch. “Testing has been accomplished on 5 of the six wells, demonstrating excellent move capability that exceeds pre-drill estimates, with anticipated common potential nicely deliverability of round 300 million normal cubic toes per day.
“This success underscores the sturdy capability of the Barossa area to maintain long-term manufacturing.
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“Additional, the Northern Territory Atmosphere Safety Authority has renewed the Atmosphere Safety License for Darwin LNG, commencing 19 September 2025. This paves the best way for first fuel into, and start-up of, the Darwin LNG plant”.
The Darwin LNG life extension mission can produce as much as about 3.7 million metric tons a 12 months of liquefied pure fuel (LNG).
Darwin LNG’s earlier supply area, Timor-Leste’s Bayu-Undan, stopped exporting fuel to the liquefaction facility late 2023 attributable to depletion, although Santos mentioned 2024 Bayu-Undan would proceed sending fuel to the Northern Territory till the top of that 12 months. In its quarterly report July 16, 2025, Santos confirmed Bayu-Undan ceased manufacturing Could 2025.
The brand new supply area, Barossa, extends Darwin LNG’s manufacturing life by twenty years, in accordance with Santos. Santos plans to drill as much as eight subsea wells.
Barossa has a floating manufacturing, storage and offloading vessel (FPSO) with a fuel dealing with capability of 850 million normal cubic toes a day and a condensate dealing with capability of 11,000 barrels per day, in accordance with Santos.
FPSO BW Opal sits round 285 kilometers (177.09 miles) off the coast of Darwin, in accordance with Santos.
“The BW Opal is among the many largest and most technically superior FPSOs ever constructed, that includes a 358-meter hull and lodging for as much as 140 personnel”, Santos famous in Monday’s assertion.
“Trade-leading combined-cycle energy technology, incorporating waste warmth restoration and steam turbine expertise, was used to maximise vitality effectivity and is predicted to cut back non-reservoir emissions by greater than 50 p.c (over 0.75 million tonnes of CO2e per 12 months) in comparison with the Offshore Mission Proposal accepted by the regulator NOPSEMA”, Santos added.
The life extension mission additionally concerned the set up of the 262-kilometer Gasoline Export Pipeline (GEP). The GEP hyperlinks Barossa to the 123-kilometer Darwin Pipeline Duplication, additionally constructed as a part of the life extension mission, in accordance with Santos.
Monday’s assertion added, “With RFSU of the BW Opal, Santos will acknowledge a lease legal responsibility of ~US$665 million and a right-of-use asset worth of ~US$1.4 billion comprising the lease legal responsibility, FPSO pre-payment and different direct prices. The impression of the working lease legal responsibility is predicted to extend gearing ~2.4 proportion factors”.
Santos operates Barossa with a 50 p.c stake. South Korea’s SK E&S owns 37.5 p.c and Japan’s JERA Co Inc has 12.5 p.c.
To contact the writer, electronic mail jov.onsat@rigzone.com
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