Blacktip gas field is located in the Timor Sea approximately 110 km off the shore of Northern Australia in the Bonaparte Basin, at a water depth of some 50 meters. The Blacktip field is fully owned and operated by Eni and has recoverable reserves of 150 million boe.

The project provides for the drilling of 2 initial development wells, the installation of a production platform, the laying of a 108-kilometer long offshore pipeline and the construction of an onshore treatment plant with a capacity of 1.3 billion cubic meters per year.

The gas drilled from Blacktip field will be mainly used to generate electricity in Darwin and other Northern Territory locations, through a 25-year Gas Sales Agreement with Power Water Corporation.

Saipem was awarded the EPIC contract encompassing the engineering, procurement, construction, installation and pre-commissioning of the wellhead platform and the 108 kilometre export pipeline system. Saipem's installation vessel Castoro Otto will be utilised for marine activities through the third quarter of 2008.

Australian offshore builder AusGroup, better known as Ausclad, was awarded a sub-contract to build the wellhead platform. Work on the A$26 million to A$28 million (US$21.3 million to US$22.9 million) contract is scheduled for completion in late 2008. Work includes the jacket, topside modules and piles. The platform will be built at the Australian Marine Complex.

Singapore-listed oil and gas fabricator AusGroup has won a $14 million contract to build storage tanks. AusGroup will design, supply, fabricate and construct four storage tanks in nine months. The tanks will be built at its operational headquarters in Kwinana, Perth, and assembled at the nearby Australian Marine Complex on specially designed grillage. The tanks will then be loaded onto a barge and transported more than 3000 kilometres to Eni's onshore gas plant site.

EPC Onshore Gas Plant Civil Works Contract has been awarded to McMahons Darwin.

Production is planned to start in 2009 at an initial annual rate of 650 million cubic meters, increasing to 1.1 billion cubic meters.