Santos announces first gas in Barossa field
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The news: Oil giant Santos has announced that its BW Opal floating production, storage and offloading (FPSO) unit in the offshore Barossa field in the Northern Territory has received first gas to begin production operations.
The numbers: The milestone follows BW Opal achieving ready start-up status on 16 September. Santos will recognise a lease liability of USD665 million ($1 billion) and a right-of-use asset value of USD1.4 billion comprising the lease liability, FPSO pre-payment and other direct costs.
Santos also reported that all six wells drilled in the Barossa gas field have intersected "excellent reservoir quality". Testing has been completed on five of the six wells, with flow capacity that "exceeds pre-drill estimates", the company said.
Meanwhile, Santos confirmed that the Northern Territory Environment Protection Authority has renewed the environment protection licence for Darwin LNG. This paves the way for first gas into the Darwin LNG plant, it said.
What they said: "First gas into the FPSO is an important step for the project and a credit to the hard work of our people and support from our partners," said Santos managing director and chief executive Kevin Gallagher.
"It puts us on track to deliver reliable energy to our customers and long-term value to our shareholders from Barossa LNG."
The source: ASX
