Santos Ltd. and its companions have sealed new financial institution borrowings totaling $800 million for a challenge to increase the productive lifetime of an Australian liquefied pure fuel (LNG) challenge whose depleting supply subject stopped provide late final 12 months.
“With these services in place, Darwin LNG is well-funded to finish the life extension works scheduled for mid-2025 and it positions Darwin LNG to think about future enlargement of this vital infrastructure, together with by way of the potential provision of third-party carbon seize companies in Darwin”, chief government Kevin Gallagher mentioned in an organization assertion Wednesday.
The senior secured, partially amortizing services encompass a seven-year $350 million mortgage due 2031 and a 12-year $450 million mortgage maturing 2036, the oil and fuel exploration and manufacturing firm mentioned within the assertion on its web site.
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“The services acquired robust assist from present and new syndicated banking relationships and the proceeds will probably be used to fund the DLNG life extension works”, Darwin LNG operator Santos mentioned. It didn’t title the backers.
In 2021 Adelaide-based Santos reached a constructive remaining funding resolution (FID) on the Barossa fuel subject challenge, securing a brand new supply for Darwin LNG, which had been provided by Timor-Leste’s Bayu-Undan subject.
Single-train Darwin LNG, situated at Wickham Level within the northwest of the Northern Territory on the Timor Sea, began manufacturing 2006. It has a designed capability of about 3.7 million metric tons a 12 months. The ability acquired feed fuel from Bayu-Undan, which is about 500 kilometers (310.7 miles) northwest of Darwin metropolis, by way of a subsea pipeline. The ability has a central manufacturing and processing advanced with a floating manufacturing, storage and offloading unit for condensate and liquefied petroleum fuel, in addition to an unmanned wellhead platform.
Whereas Santos confirmed within the assertion Wednesday that the supply subject within the Southeast Asian nation had stopped supplying Darwin LNG late 2023, it mentioned in a monetary replace August 21, 2024, that Bayu-Undan would proceed sending fuel to the Northern Territory within the second half of 2024.
The brand new supply subject, Barossa, is deliberate to start out manufacturing 2025 beneath a $600 million growth challenge. Barossa will lengthen the lifetime of Darwin LNG for round 20 years.
“The Barossa growth will comprise a Floating Manufacturing, Storage and Offloading vessel, subsea manufacturing wells, supporting subsea infrastructure and a fuel export pipeline tied into the present Bayu-Undan to Darwin LNG pipeline”, Santos mentioned in a press launch March 30, 2021, saying the FID.
“Barossa is among the lowest price, new LNG provide tasks on the earth and can give Santos and Darwin LNG a aggressive benefit in a tightening international LNG market”, it mentioned then. “The challenge represents the largest funding in Australia’s oil and fuel sector since 2012”.
Santos owns a 43.4 % stake in Darwin LNG, which has investments from main LNG-buying international locations Japan and South Korea. SK E&S Co. Ltd. holds 25 %, INPEX Corp. has 11.4 %, Eni SPA 11 %, JERA Co. Inc. 6.1 % and Tokyo Fuel Co. Ltd. 3.1 %.
Within the Barossa fuel challenge, Santos owns a 50 % working stake. South Korea’s SK E&S owns 37.5 % and Japan’s JERA owns the remaining 12.5 %.
To contact the writer, e mail jov.onsat@rigzone.com
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