Santos and Eni intend to decarbonise upstream activity in Australia. Credit: Kristina Kasputienė from Pixabay.

Eni has collaborated with Santos on gas field development and carbon capture and storage (CCS) opportunities in northern Australia and Timor-Leste.

The firms will cooperate on optimisations, driving synergies, and sharing of infrastructure between two offshore fields in Australia.

These two fields include the Barossa gas project and the Eni-operated Evans Shoal development.

The companies will jointly work on options to repurpose and extend the life of the Bayu-Undan field in the Timor Sea, as well as the possible expansion of the associated Darwin LNG project in Northern Territory, Australia.

The companies also agreed to explore joint development of CO₂ capture and storage or utilisation (CCUS) facilities.

As part of this plan, the firms initially intend to develop a carbon capture and storage project subject to the consent of the Timor-Leste government.

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The long-term goal is to enable the creation of a CO₂ management hub in Australia’s Northern Territory, the firms said.

Santos managing director and CEO Kevin Gallagher said: “A CCS project at Bayu-Undan could provide a new job-creating and revenue-generating industry for Timor-Leste with quality carbon credits increasing in both demand and value internationally.

“Capturing and storing CO₂ from industries in the Northern Territory will help it meet its net-zero emissions by 2050 target. That’s good for the environment, good for local jobs, good for local investment, and good for regional development.”

Eni said that firms will also collaborate in new upstream development opportunities, including the potential development of Petrel and Tern through Blacktip/Yelcherr gas plant facilities.

Eni said in a press statement: “For Eni this collaboration with Santos is an important step in the pathway to decarbonising upstream activity in Australia, leveraging both companies’ expertise with the aim of reducing CO₂ emissions.”