Santos Achieves First Gas at BW Opal FPSO, Marking Major Milestone for Barossa LNG Project

Darwin, September 23, 2025 – Santos has reached a major milestone in the Barossa LNG development, announcing that the BW Opal Floating Production, Storage and Offloading vessel (FPSO) has successfully received first gas and commenced production operations. This follows the FPSO’s “ready for start-up” (RFSU) status on 16 September 2025 and the initiation of flow from the subsea wells.

The achievement represents a significant step for Santos and its joint venture partners, PRISM Energy Australia and JERA Australia, in advancing one of Australia’s most important LNG projects.

Strong production outlook from Barossa wells

All six wells drilled in the Barossa gas field have intersected high-quality reservoirs. Testing has been completed on five of the six wells, delivering results that exceed pre-drill expectations. The field is expected to achieve an average potential deliverability of approximately 300 million standard cubic feet per day, confirming Barossa’s robust capacity to sustain long-term production.

Environmental clearance for Darwin LNG

The Northern Territory Environment Protection Authority has renewed the Environment Protection Licence for Darwin LNG, effective 19 September 2025. This clears the way for the Darwin LNG plant to receive first gas and commence production, aligning with the broader development timeline for the Barossa project.

CEO highlights significance of milestone

Santos Managing Director and Chief Executive Officer Kevin Gallagher described the achievement as the formal transition from project execution to production operations.“First gas into the FPSO is an important step for the project and a credit to the hard work of our people and the support from our partners. It keeps us on track to deliver reliable energy to our customers and long-term value to our shareholders from Barossa LNG,” Gallagher said.

BW Opal: one of the world’s largest and most advanced FPSOs

At 358 metres long, the BW Opal ranks among the largest and most technically advanced FPSOs ever built. It can accommodate up to 140 personnel and has a processing capacity of 850 million standard cubic feet of gas and 11,000 barrels of condensate per day.

The FPSO also features industry-leading combined-cycle power generation, using waste heat recovery and steam turbine technology to maximise efficiency. This is expected to cut non-reservoir emissions by more than 50 percent—equivalent to over 0.75 million tonnes of CO₂e annually—compared to the Offshore Project Proposal initially approved by regulator NOPSEMA.

Long-term production hub for Darwin LNG

The BW Opal will be permanently stationed in the Barossa gas field, located about 285 kilometres offshore from Darwin, Northern Territory. As the centrepiece of the Barossa LNG project, it will supply feed gas to the Darwin LNG plant for at least the next two decades.

Financial impact

With the BW Opal achieving start-up, Santos will record a lease liability of approximately US$665 million and a right-of-use asset of around US$1.4 billion, including pre-payments and direct costs. The operating lease is expected to increase the company’s gearing by around 2.4 percentage points.

Media Laloran Tasi Mane

23 Setembru, 2025