Santos (ASX:STO) awards contract to BW Offshore

Santos, (ASX:STO) as operator of the Barossa joint venture, has awarded the contract for the construction, connection and operation of the Floating Production, Storage and Offloading vessel to BW Offshore.

BW Offshore is an international vessel builder and operator.

The contract represents the largest capital expenditure component of the approximately US$3.6 billion Barossa offshore gas and condensate project to backfill Darwin LNG.

The contract achieves an overall reduction of approximately US$1 billion in capital expenditure.

Barossa will provide the next source of gas for the existing Santos-operated Darwin LNG plant once current reserves from the Santos-operated Bayu-Undan field in the Timor Sea have been depleted.

Shares in Santos (ASX:STO) are trading 0.4 per cent lower at $7.14.
 
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Source: Finance News Network