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Barossa project offshore Australia awards another construction contract

The Barossa consortium awarded an engineering, procurement and installation contract for a 260-kilometer gas export pipeline to Allseas Group SA, bringing the Barossa gas project offshore Australia one step closer to a final investment decision early next year.

Under the contract, Allseas would provide engineering, procurement, construction and installation of the planned pipeline, which is designed to connect the Barossa gas field north of Darwin, Australia, to the Bayu-Undan-to-Darwin pipeline, according to a Sept. 26 news release from Santos Ltd.

The Barossa gas project is expected to provide a new gas source to the existing Darwin LNG facility, replacing resources from the Bayu-Undan gas field. The project is composed of a floating production, storage and offloading, or FPSO, facility; a subsea production system; and the gas export pipeline.

The project is in the front-end engineering design phase, with a final investment decision scheduled for early 2020. Santos also said the evaluation of tenders for the FPSO and development drilling contracts have advanced. First gas for the project is expected around four to five years after the final investment decision, according to a fact sheet from project operator ConocoPhillips.

The consortium has previously awarded an engineering, procurement and construction contract to TechnipFMC PLC subsidiary Technip Oceania Pty. Ltd.

ConocoPhillips subsidiary ConocoPhillips Australia Barossa Pty. Ltd. serves as project operator with a 37.5% stake, while Santos unit Santos Offshore Pty Ltd owns a 25% interest. SK E&S Australia Pty., Ltd. also holds a 37.5% stake.