Santos, GDF Shelve Bonaparte FLNG Development Option Offshore Darwin

Santos Limited announced Thursday that the company and France's GDF Suez S.A. will consider other potential development options for the Bonaparte LNG (liquefied natural gas) project in addition to the floating LNG concept to develop the Petrel, Tern and Frigate natural gas fields, located 155 miles (250 kilometers) offshore west of Darwin, Australia.

Among the alternative development options are a pipeline connection to Darwin.

"While the partners firmly believe the fields have material value, having been fully appraised, their future development using floating LNG technology, although technically robust as demonstrated during extensive pre-FEED (front-end engineering and design) studies, does not currently meet the companies' commercial requirements," Santos said in a press release.

As a result, the partners have decided against proceeding with the Bonaparte floating LNG project to the FEED phase at this point in time.

"Santos received a cash consideration of $200 million when the Bonaparte LNG joint venture was formed, and has received a full carry on study and development costs by GDF Suez," the company added.