CONOCOPHILLIPS Australia, operator of the Barossa joint venture, has awarded three contracts for the Engineering, Procurement, Construction and Installation (EPCI) of Subsea Umbilicals, Risers, and Flowlines (SURF) for the Barossa Project off the northern coast of Australia.
The major contract, covering the Transport and Installation of all the SURF infrastructure as well as the supply of the infield flowlines, has been awarded to Subsea 7 with project management and engineering to be based in Perth.
Two other EPC contracts have been awarded: to Aker Solutions for supply of the umbilicals and to National Oilwell Varco Denmark I/S for supply of the flexible risers.
“Award of the SURF contracts is an important milestone for the project with contracts now in place for all the major facilities, following the earlier award of separate contracts for the FPSO facility, Gas Export Pipeline and Subsea Production System.” said Steve Ovenden, ConocoPhillips Australia-West vice president for the Barossa Development.
“Award of all major facility contracts has allowed us to significantly de-risk the project, providing increased confidence over our cost, schedule and execution plans heading into the Final Investment Decision.”
The Barossa offshore development includes the FPSO, subsea wells, subsea production system and a 260km gas export pipeline to a tie-in location on the existing Bayu-Darwin Pipeline, all located in Commonwealth waters north of Darwin, Northern Territory.
Subject to commercial arrangements being agreed, the Barossa Project will provide a new source of gas to Darwin LNG when the current offshore gas supply from Bayu-Undan is exhausted.
Barossa will meet future global demand for natural gas and contribute significant income, employment and other benefits to the Northern Territory and Australia for a further 20 years.
In October 2019, ConocoPhillips entered a Sale & Purchase Agreement for the sale of the subsidiaries that hold its Australia-West assets and operations to Santos. This includes ConocoPhillips’ share of Darwin LNG, Bayu-Undan, Timor-Leste office and facilities, the Barossa Field and Project, the Caldita Field and the Greater Poseidon Fields, along with operatorship of these assets and our interest in the Athena Field. The effective date of the transaction was Jan. 1, 2019, but it remains subject to regulatory approval and other specific conditions precedent. The sale is expected to be completed in the first quarter of 2020.
The sale does not include the subsidiaries that hold ConocoPhillips’ Australia-East assets and operations and ConocoPhillips’ share of Australia Pacific LNG. ConocoPhillips will also continue to operate the Australia Pacific LNG plant on Curtis Island and remains committed to these ongoing Australian operations.
The Industry Capability Network is managing locating local Australian vendors for the Barossa Offshore Project. To register for potential opportunities visit barossaoffshore.icn.org.au
The Barossa joint venturers are ConocoPhillips Australia Barossa Pty Ltd (operator, 37.5%), SK E&S Australia Pty Ltd (37.5%) and Santos Offshore Pty Ltd (25.0%). The offshore development area encompasses petroleum retention lease NT/RL5 and potential future phased development in the smaller Caldita Field to the south in retention lease NT/RL6.