Beach Energy will construct a six inch, 70km liquids flowline from the Growler oil field to the Lycium oil field, which will have a initial capacity of 8000 barrels of oil per day.

Beach will also construct an eight inch, 74km liquids flowline from Lycium to the liquids plant at Moomba, with initial capacity of 15,000 barrels of oil per day.

Under the terms of the agreement, Senex will hold a 60% interest in the Growler to Lycium flowline and a 40% interest in the Lycium to Moomba flowline at a combined net cost of about A$20m ($20.7m).

The construction and commissioning of the flowlines is expected to be completed by June 2012.