Eni and Santos have signed a non-binding memorandum of understanding (MoU) to identify potential new areas of collaboration in northern Australia and Timor-Leste, including but not limited to developments of offshore Australian fields and extending the life of Timor-Leste’s Bayu-Undan, Eni stated in a  press release.

Under the terms of the MoU, the companies will seek cooperation in optimizations, synergies, and sharing of infrastructure between the Barossa Project and the Evans Shoal development, including the potential expansion of Darwin liquefied natural gas (LNG) and options to repurpose and extend the life of Bayu-Undan.

Both sides will also cooperate in potential joint development of CO2 capture and storage or utilization (CCUS) facilities, serving not only assets owned by the two companies but open to any interested third-party project in the Darwin area.

Additionally, the companies will cooperate to explore in new upstream development opportunities in relation to other offshore stranded resources in northern Australia.

This agreement is a significant step to the decarbonization of upstream activity in Australia, leveraging both companies’ expertise with the aim of reducing CO2 emissions. It also highlights the importance of adopting a synergistic approach that encourages collaboration among industry players.