Core Insights - Santos has successfully commenced gas production from the BW Opal FPSO, marking a significant milestone for the $4.5 billion Barossa LNG project offshore northern Australia [1][2][4] Group 1: Project Overview - The BW Opal FPSO will be permanently stationed approximately 285 km offshore from Darwin and is expected to supply the Darwin LNG plant for the next two decades [2] - All six wells drilled in the Barossa gas field have demonstrated high reservoir quality, with an average deliverability of approximately 300 million standard cubic feet per day (mscf/d) [3] Group 2: Operational Milestones - The BW Opal reached its ready-for-start-up (RFSU) status on September 16, and gas began flowing from the subsea wells shortly thereafter [1][4] - The Northern Territory Environment Protection Authority has renewed the Environment Protection Licence for Darwin LNG, effective from September 19, facilitating the commencement of operations [3] Group 3: Technical Specifications - The BW Opal FPSO is one of the largest ever constructed, featuring a 358m hull and the capacity to accommodate up to 140 personnel, handling 850 mscf/d of gas and 11,000 barrels of condensate daily [5] - The vessel utilizes combined-cycle power generation technology to enhance energy efficiency and reduce emissions [6] Group 4: Financial Implications - With the RFSU status of the BW Opal, Santos will recognize a lease liability of approximately $665 million and a right-of-use asset valued at around $1.4 billion [6]

Core Points - BW Offshore announced that the BW Opal FPSO achieved First Gas on September 20, marking a significant transition from project to operations phase [1] - The FPSO reached Ready for Start-Up (RFSU) for the Barossa LNG project on September 16, initiating 60% of the contractual dayrate under the charter [1][2] - The next milestone, Interim Performance Test (IPT), will increase the payable dayrate to 85%, while Practical Completion (PC) will trigger 100% of the dayrate and commence a 15-year firm contract period [2] Company Overview - BW Opal FPSO is designed to process 850 million standard cubic feet per day (MMSCFD) of gas and has a capacity of 11,000 barrels per day of stabilized condensate [3] - The FPSO will operate in the Santos operated Barossa gas field, located 285 kilometers offshore Darwin in the Northern Territory of Australia [3] - BW Offshore has a fleet of FPSOs and aims to grow by leveraging four decades of offshore operations and project execution [4]