The Darwin LNG Project is an LNG value chain project that involves the development and production of gas mainly from the Bayu-Undan Gas Field located 250km off the southern coast of East Timor and 500km off the coast of Darwin, Australia, as well as the pipeline transport and liquefaction of that gas. The sale will have an effective date of the beginning of 2019 and is expected to complete in the first quarter of 2020. With a suite of expansion opportunities in the oil and gas sector, Darwin will continue to play an important role in providing energy security for Australia and its strategic partners throughout Asia. All Rights Reserved. “This acquisition delivers operatorship and control of strategic LNG infrastructure at Darwin, with approvals in place supporting expansion to 10 [million tonnes per year], and the low cost, long life Barossa gas project.”. Santos Energy has set out a deal to buy Australian gas assets, in the Northern Territory (NT), from ConocoPhillips for $1.39 billion. In addition, he stated Santos is in talks with existing Darwin LNG joint-venture partners to sell equity in Barossa and further equity in Darwin LNG and also with LNG buyers for offtake volumes. The energy development is a joint venture between INPEX group companies (the Operator), major partner Total, and the Australian subsidiaries of CPC Corporation Taiwan, Tokyo Gas, Osaka Gas, Kansai Electric Power, JERA and Toho Gas. The U.S. oil major has also previously said an expansion in the current market would be challenging due to low oil and LNG prices, and costs that have risen steeply since Darwin LNG was built more than a decade ago. The Darwin LNG plant emits about 1.66 mtpa of C02, as reported to the Clean Energy Regulator. Santos has also held talks with other owners of Darwin LNG on the potential for them to buy into the Barossa field. This 4 way alliance led by Dragon and Darwin works with many other fractional partners throughout the region and across the UK. ConocoPhillips and its partners are considering expanding their Darwin liquefied natural gas (LNG) plant in Australia, with backing from other companies with undeveloped gas resources that could feed the plant. The ConocoPhillips Darwin LNG plant, which has been producing gas from the Bayu-Undan field in the Timor Sea, 500km north west of the NT, since 2006. It is also planning to buy back $3bn of its own shares in 2020. Darwin LNG is co-owned by ConocoPhillips, Santos, Japan's Inpex, ENI, Tokyo Electric Power Co and Tokyo Gas Co. (Reporting by Tom Westbrook; Writing by … ... including a pipeline connection to Darwin, rather than the FLNG will be explored. “The deal fits within Santos’s strategy of acquiring low-cost, Australasian natural gas assets. The treaty between Australia and Timor Leste will benefit the region as the Darwin LNG project will result in new employment opportunities and demand for local goods and services. The treaty also allows them to share the gas production, taxes and export earnings. Santos will target the contracting of ~60-80% of LNG volumes for 10+ years prior to taking FID on Barossa, which is expected by early 2020. ConocoPhillips has a 56.9% stake in Darwin LNG and Bayu-Undan, with 37.5% in Barossa, and is the operator of all three. A Final Investment Decision for Ichthys LNG was reached in 2012 and production commenced in July 2018. Santos will target the contracting of ~60-80 percent of LNG volumes for 10+ years prior to taking FID on Barossa, which is expected by early 2020. The Bonaparte Liquefied Natural Gas (LNG) project was initially planned to cover the deployment of a floating, production, storage and offloading (FPSO) LNG facility in the Bonaparte Basin in the Timor Sea, off the northern coast of Australia. Tokyo Gas is a non-operating joint venture participant in Darwin LNG project, Pluto LNG project, Gorgon LNG project, Ichthys LNG project and Queensland Curtis LNG project. Santos is the leading Australian oil and gas exploration and production company in the Northern Territory, with a significant presence both onshore and offshore. Darwin is now home to three LNG trains, and is the service and supply centre for world-first Prelude Floating LNG project in the Timor Sea. Barossa would be developed via a floating production, storage and offloading (FPSO) unit and a 260-km pipeline to Darwin LNG. ConocoPhillips has previously talked only about developing a new gas field for around $10 billion to fill the plant’s single production unit, or train, when supply from its current gas source, the Bayu-Undan field, runs out around 2022. All quotes delayed a minimum of 15 minutes. “With Darwin LNG, five upstream joint ventures and the Northern Territory Government involved, it is a pioneering example of all of industry and government collaborating on solutions to unlock major investments,” ConocoPhillips Australia West vice president Kayleen Ewin said in a statement. Santos is considering selling equity in Barossa while also targeting a final investment decision (FID) on the project for early 2020. “Discussions to date have demonstrated strong interest in Barossa LNG, given it is a brownfield upstream development located close to North Asian demand,” Gallagher said. Dragon LNG and the Darwin Centre are lead partners in the project which operates through working association with the local Educational Services (Pembs County Council) and Pembrokeshire College. Potential deepC Store Project client? The Ichthys LNG project will be one of the largest LNG export facilities in Australia. The company said it will target contracting approximately 60-80% of LNG volumes for more than 10 years before taking a final investment decision on Barossa, which is expected by early 2020. “We are also in discussions with existing Darwin LNG joint-venture partners to sell equity in Barossa and further equity in Darwin LNG and also with LNG buyers for offtake volumes,” Gallagher said. : the Darwin LNG plant in Australia's Northern Territory Photo: CONOCOPHILLIPS Major utilities, partners sign on to advance ambitious carbon-capture hub plans The deal also involves a potential $75 million payment on the Barossa project. Prior to the coronavirus (COVID-19) pandemic and oil price crash issues, the story of the future supply of feedstock gas into some of Western Australia's LNG plants was looking pretty firm. Gaining equity alignment across the Barossa project and the Darwin LNG plant would remove a key hurdle for taking FID on the Barossa project,” said Low. The Ichthys liquefied natural gas (LNG) terminal is part of the $34bn Ichthys LNG project in Darwin, the capital city of the Northern Territory in Australia. We were formed by the March 2013 combination of international law firm Salans LLP, Canadian law firm Fraser Milner Casgrain LLP (FMC) and international law firm SNR Denton. Alexis Fletcher, Dragon LNG Managing Director said : “As the core sponsor for the Dragon LNG Darwin Centre Experience project since 2005, we are delighted to receive this award on behalf of the projects’ partners including Pembrokeshire College, Pembrokeshire County Council Education Authority, Milford Haven School Cluster and numerous networks and stakeholders. Currently, the plant has only one train. Something went wrong - please try again later. View the profiles of professionals named "Ian Gibson" on LinkedIn. © Energy Voice 2021. Darwin LNG currently has 3.7mn tpy of capacity. The US independent completed the sale of its UK exploration and production assets in September, to Chrysaor, for around $2.7bn. About 300 km north of Darwin, Australia, the Barossa gas field will be developed as the source of gas to backfill Darwin LNG when Bayu-Undan ceases production. Spending to first gas, in 2024, has been estimated at $4.7bn. ConocoPhillips’ executive vice president and COO Matt Fox said that while “the Darwin LNG backfill project remains among the lower cost of supply options for new global LNG supply, this transaction allows us to allocate capital to other projects that we believe will generate the highest long-term value” for the company. Australia's oil and gas company Santos will sell a 25% interest in Darwin LNG and Bayu Undan gas condensate offshore field to SK E&S for US$390 million with effect from October 1, 2019 with customary adjustments on completion. See here for a complete list of exchanges and delays. The Ichthys Field is located in … Barossa is a backfill project that could extend the viable production lifetime of Australia’s Darwin LNG export terminal by more than 20 years. Shell UK explores and produces energy products - fuels, oil, natural gas, lubricants, LPG, chemicals; including 100% renewable electricity by Shell Energy. The development of Darwin LNG, supported by an effective supply chain established by local industry, demonstrated the capability of the Northern Territory to be a significant LNG industry supply and service hub. Santos has a large discovered resource base across Northern Australia that … The two companies have been involved in the project since the start, in 2006. TechnipFMC will solely engineer, procure, construct and install our CO2 capture, liquefaction and offloading facilities at the CO2 emitter site locations for our deepC Store project. The company’s partnership with the NT stretches back many years, having been the major supplier of gas to the local market and as the only Australian company in Darwin LNG. A $650,000 feasibility study on building a second train is due to be completed this year, the Northern Territory government said on Wednesday, announcing that it would contribute $250,000 toward the study. Shell to sell stake in Australian LNG facilities for £1.9bn, Australia’s Santos steals a march with Barossa LNG deal, Woodside helps Australian offshore exploration spend hit 44-year low, Offshore training consultancy stays ahead of the game with new programmes, Small North Sea start-up facing ‘frightening’ Brexit costs, Westminster accused of playing party politics over sector deal after north-east SNP MPs request for meeting snubbed, Strathclyde University announces new offshore renewables course, Unite threatens ballot over Bilfinger Salamis pay dispute, Xergy bags £425k grant to further develop Proteus digital platform. 'We are also in discussions with existing Darwin LNG joint-venture partners to sell equity in Barossa and further equity in Darwin LNG and also with LNG buyers for offtake volumes. Views. Earlier in October the company said it would increase its dividend by 38%, around $500mn over the year. Santos is expected to stump up $775-825mn, which will come from cash resources, with a new $750mn in debt. Five joint ventures with undeveloped gas resources off the coast of the Northern Territory are backing the study, with stakeholders including Royal Dutch Shell, Malaysia’s Petronas [PETR.UL], Italy’s ENI SpA, and Australia’s Santos and Origin Energy. 90 % of the funding comes from Dragon LNG, with Pembrokeshire County Council … Neptune buys up Edison stake in Glengorm field, Unlimited web access from just £12.50 per month. Delta Partners Ltd Delta Partners Unit A9 Pearmill Estate, Stockport Road West, Bredbury, Stockport, SK6 2BP 0161 406 1820 EDK Vodat International Ltd 29 Harley Street, London, W1G 1HT 0844 493 0000 271 Regent Street, London, W1B 2ES 0845 6522040 53 Whitefriars Wharf Tonbridge Kent TN9 1QR Acomys Limited 2 Church Street Wiveliscombe Taunton TA4 2LR Santos also said it would receive the benefit of approximately US$120 million of cash flow relating to the interests from 1 January 2019 to 1 … Santos holds a 25 percent interest in the Barossa-Caldita joint venture along with partners ConocoPhillips (37.5 percent and operator) and SK E&S (37.5 percent). ConocoPhillips has a 56.9% stake in Darwin LNG and Bayu-Undan, with 37.5% in Barossa, and is the operator of all three. DARWIN (Reuters) - ConocoPhillips and its partners are considering expanding their Darwin liquefied natural gas (LNG) plant in Australia, with backing from other companies with undeveloped gas resources that could feed the plant. Santos currently has 11.5% in the first two and 25% in Barossa. “The acquisition of these assets fully aligns with Santos’ growth strategy to build on existing infrastructure positions while advancing our aim to be a leading regional LNG supplier,” Santos’ managing director and CEO Kevin Gallagher said. However, even though Barossa is attractive as a brownfield LNG backfill investment, it is also a large and complex project. ConocoPhillips is keeping its 37.5% stake in Australia Pacific (AP) LNG. Santos is also a joint venture partner in Darwin LNG with an 11.5 percent interest. Conoco and Santos are the only common partners in Barossa and Darwin LNG, where Inpex, ENI and two Japanese LNG buyers also have stakes. “The Territory Labor Government is supporting the feasibility study because this is a significant investment toward the business case for potential expansion at Darwin LNG, potentially creating thousands of jobs during construction and operation,” Northern Territory Chief Minister Michael Gunner said in a statement. Located in Darwin, the LNG facility is operated by ConocoPhillips on behalf of the same co-venture partners as Bayu-Undan. The Australian company said an FID on Barossa would require contracts to be signed on 60-80% of volumes from this next phase. Other Darwin LNG partners include Santos Ltd, Eni SPA, Inpex, Tokyo Electric Power, and Tokyo Gas Co. This is a proposed backfill plan to secure more gas for Darwin LNG, once supplies from Bayu-Undan have been depleted. This means each tonne of Barossa LNG from the 3.7 million tonnes a year Darwin LNG plant would send about 1.36 tonnes of carbon dioxide into the atmosphere. There are 400+ professionals named "Ian Gibson", who use LinkedIn to exchange information, ideas, and opportunities. About 500 km northwest of Darwin LNG in the Timor Sea, the Bayu-Undan facility currently … More than 500 ships have been loaded in the 10 years since. Reporting by Tom Westbrook; Writing by Sonali Paul; Editing by Tom Hogue. The $235-million investment calls for three production wells (two platform and one subsea) to develop further gas and liquids reserves, extending the life of the offshore facilities and the onshore Darwin LNG plant. Delta Partners Ltd Delta Partners Unit A9 Pearmill Estate, Stockport Road West, Bredbury, Stockport, SK6 2BP 0161 406 1820 EDK Vodat International Ltd 29 Harley Street, London, W1G 1HT 0844 493 0000 271 Regent Street, London, W1B 2ES 0845 6522040 53 Whitefriars Wharf Tonbridge Kent TN9 1QR Acomys Limited 2 Church Street Wiveliscombe Taunton TA4 2LR Our Standards: The Thomson Reuters Trust Principles. Thank you for signing up to our newsletter. There was Barossa to backfill Darwin LNG, Browse to backfill North West Shelf (NWS) LNG and Scarborough to both backfill Pluto LNG train 1 and also underpin the development of Pluto LNG train 2. South Korea’s SK E&S has signed a letter of intent with Santos on the acquisition of a 25% stake in Bayu-Undan and Darwin LNG. ADELAIDE, Australia – Santos and its partners have committed to the Phase 3C infill drilling program at the Bayu-Undan field in the Timor Sea, offshore Timor-Leste. We have interests in the Timor Sea, and the Carnarvon, Browse, Bonaparte, Beetaloo and Canning Basins and multiple projects including Prelude FLNG, Van Gogh, Coniston and Bayu-Undan / Darwin LNG. Darwin LNG is co-owned by ConocoPhillips, Santos, Japan’s Inpex, ENI, Tokyo Electric Power Co and Tokyo Gas Co. Once the deal has been completed, this will be refinanced. Santos currently has a 68.4% interest and operatorship in Bayu-Undan and Darwin LNG which will reduce to 43.4% upon completion of a 25% sell down to SK E&S. The prospects for extending the life of ConocoPhillips' Darwin LNG plant have surged after successful drilling and cost reduction efforts at the Barossa gas field. With over US$4 billion of capex spend to first gas, executing the development on time and on budget will be a major test of Santos’s ‘big project’ credentials,” Wood Mackenzie’s senior analyst David Low said. Reaching FID on Barossa would trigger the contingent payment to ConocoPhillips. The deal will expand Santos’ footprint in the NT, with the Darwin LNG plant at the centre of the acquisition. ConocoPhillips also has a 40% interest in the Poseidon field and a 50% interest in the Athena. Register here for the Energy Voice daily newsletter, bringing you key news and insight from across the global energy landscape. In 2003, Tokyo Electric Power Company (since renamed and referred to herein as "TEPCO") and Tokyo … “Acquiring control of the key infrastructure asset, Darwin LNG, offers Santos a future option for monetising other stranded NT gas assets, such as Petrel, Tern, and Frigate.”. Darwin LNG is co-owned by ConocoPhillips, Santos, Japan’s Inpex, ENI, Tokyo Electric Power Co and Tokyo Gas Co. Globally, INPEX is a major player in production of clean, efficient and reliable natural gas for the Asia-Oceanic region. Dentons is a global law firm driven to provide you with the competitive edge in an increasingly complex and interconnected marketplace. 500 Views. 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