The Blacktip gas field is located in the Bonaparte Basin offshore Australia in the Timor Sea on permit WA-279-P. Situated in a water depth of 164 feet (50 meters), the field is wholly owned and operated by ENI.

In 2001, Blacktip was discovered by the Blacktip-1 well, which flowed at a rate of 89 MMcf/d principally from the Permian interval. The Transocean Sedco Forex jackup drilled the discovery well in 164 feet (50 meters) of water. Shortly after the discovery, the field was further explored and deemed commercially viable.

Blacktip holds an estimated 933 billion standard cubic feet of raw gas and 5.7 million barrels of condensate.

Field Development

Originally, the project was scheduled to begin field development in 2006, with production commencing in 2007. However, the Blacktip development encountered significant development difficulty and delay. In 2008, ENI began developing the field with hopes to continue to explore the area and drill additional wells to add to the field's production.

Field development for the Blacktip field consists of two production wells tied-back to an unmanned wellhead platform, which is connected to a 67-mile (108-kilometer) pipeline. The pipeline will export the gas to shore to be processed at a plant located 1.5 miles (2.5 kilometers) onshore. The condensate will be exported by seaborne tankers via a subsea export pipeline approximately 1.8 miles (3 kilometers) in length and sent to Alcan's alumina refinery at Gove in the Northern Territory.

Saipem won an EPIC contract for the field's wellhead platform and the 67-mile (108-kilometer) export pipeline system. Saipem, using the Castoro Otto, a 623-foot (190-meter) anchored, derrick/lay vessel, undertook installation work.

In September 2008, AusGroup Limited received a $30 million labor supply contract for the project. The scope of work included installing a wellhead platform jacket, piles and topsides, which was completed in January 2009.

The Ausclad Group of Companies delivered the field's wellhead platform in April 2009. The project used 3,086 tons (2,800 tonnes) of structural steel in total, including 1,433 tons (1,300 tonnes) on the jacket, 645 tons (585 tonnes) in the topside section, and 882 tons (800 tonnes) for the piles. The company's scope of work involved the fabrication of the jacket, topside, piles and offshore installation manning. AGC also performed the design, fabrication and construction of five storage tanks for the Blacktip onshore gas plant.

Production is expected to commence at the end of 2009 and flow at an initial rate of 22 Bcf/d (650 MMcm/d). The production and export facilities are being designed for a life span of 30 years.