The Barossa LNG project, operated by Santos, is progressing towards its first LNG cargo despite technical challenges and union allegations regarding its floating production, storage and offloading (FPSO) vessel, the BW Opal. The FPSO, which has a capacity of 850 million cubic feet of gas and 11,000 barrels of condensate per day, achieved ready for start-up status in mid-September, allowing gas to flow from subsea wells. Santos has since begun the LNG production process, taking a measured approach to final commissioning.

Union Allegations of Technical Issues

The Offshore Alliance (OA) union has alleged significant technical issues onboard the BW Opal, claiming they have derailed the project schedule. The union stated that personnel on board reached maximum capacity last week with additional maintenance crews addressing these problems. Specific incidents cited include a 53-kilogram Glass Reinforced-Epoxy pipe disconnecting from the Fire Water System during a pressure ramp-up, and a separate 100-kilogram valve on the same system coming loose. The OA claims these issues led to a production hold and created a safety risk by preventing helicopter operations due to a lack of water for emergency firefighting equipment. The union plans to file a complaint with the offshore regulator NOPSEMA.

Company Responses and Project Status

FPSO owner BW Offshore confirmed the achievement of first gas in September and the progression into the commissioning phase. A company spokesperson characterized technical adjustments and early operational challenges as normal during this process, noting that production levels would vary until Practical Completion. BW Offshore stated it is working with Santos to achieve Practical Completion, which remains on track for the first quarter of 2026. The company had not responded to the specific OA claims at the time of reporting.

Impact on Production Guidance

The start-up issues at Barossa, combined with flooding at its onshore Cooper basin assets, led Santos to lower its full-year 2025 production guidance in October of last year. The company is scheduled to release its fourth-quarter 2025 results on 22 February.