Santos Launches Production at BW Opal: First Gas Received in Barossa LNG Project

Santos has announced that the BW Opal FPSO (floating production, storage, and offloading vessel) has successfully received its first gas, marking the commencement of production operations. This follows the BW Opal achieving ready-for-start-up status on September 16, 2025, and the initiation of gas flow from the subsea wells. This milestone is significant for Santos and its Barossa joint venture partners, PRISM Energy Australia and JERA Australia, in advancing the Barossa LNG project.

Additionally, Santos reported that all six wells drilled in the Barossa gas field have encountered excellent reservoir quality. Testing has been completed on five of these wells, showcasing outstanding flow capacity that surpasses pre-drill estimates, with an expected average well deliverability of around 300 million standard cubic feet per day. This achievement highlights the Barossa field’s strong capacity for sustained long-term production.

Moreover, the Northern Territory Environment Protection Authority has renewed the Environment Protection Licence for Darwin LNG, effective from September 19, 2025. This renewal facilitates the introduction of first gas and the start-up of the Darwin LNG plant.

Santos Managing Director and CEO Kevin Gallagher stated:

“RFSU for the BW Opal marked the formal transition from project execution to production operations, following RFSU for the Darwin LNG plant upon completion of the life extension work scope and the commencement of production from the offshore subsea wells.”

“First gas into the FPSO is an important step for the project and a testament to the hard work of our team and the support from our partners. It positions us to deliver reliable energy to our customers and long-term value to our shareholders from Barossa LNG,” Mr. Gallagher added.

The BW Opal is one of the largest and most technologically advanced FPSOs ever constructed, featuring a 358-meter hull and accommodations for up to 140 personnel. It has a gas handling capacity of 850 million standard cubic feet per day and a condensate handling capacity of 11 000 barrels per day. The installation employs industry-leading combined-cycle power generation, utilizing waste heat recovery and steam turbine technology to maximize energy efficiency, and is expected to reduce non-reservoir emissions by over 50 % (more than 0,75 million tonnes of CO_2e per year) compared to the Offshore Project Proposal approved by the regulator NOPSEMA.

The FPSO serves as the production centerpiece of Santos’ Barossa LNG project and will be permanently stationed in the Barossa gas field, approximately 285 kilometers offshore from Darwin in the Northern Territory of Australia. It will supply the Darwin LNG plant for the next two decades.

With the RFSU of the BW Opal, Santos will recognize a lease liability of approximately US $665 million and a right-of-use asset value of around US $1,4 billion, which includes the lease liability, FPSO pre-payment, and other direct costs. The impact of the operating lease liability is anticipated to increase gearing by approximately 2,4 percentage points.