ConocoPhillips awards floating vessel contract for Barossa to Japan's Modec

(Reuters) - ConocoPhillips' COP.N Australian arm said on Wednesday it has awarded a contract to Japanese firm MODEC International to deliver an offshore floating vessel for its Barossa gas project, off northern Australia.

The facility would supply gas to the company’s Darwin LNG liquefied natural gas project, whose current source of the resource - the Bayu-Undan gas field - is set to run dry in 2022.

“The Barossa Project will provide a new source of gas to Darwin LNG when the current offshore gas supply from Bayu-Undan is exhausted,” ConocoPhillips said in a statement.

“This is the largest and most significant contract to be awarded for the Barossa Project and a significant milestone in moving closer to a final investment decision in early 2020.”

The company did not disclose financial details of the contract.

The floating, production storage and offloading (FPSO) facility would be permanently located 300 km (186 miles)north of Darwin in Australia’s Northern Territory.

ConocoPhillips operates the Darwin LNG project and the Bayu-Undan facility, with joint venture partners Santos Ltd STO.AX, INPEX 1605.T, Eni SpA ENI.MI, Jera and Tokyo Gas 9531.T.

Earlier this month, it said it would sell its northern Australian business to Santos, including its share of Darwin LNG, Bayu-Undan and the Barossa field and project.

Reporting By Rushil Dutta in Bengaluru; editing by Richard Pullin