Carnarvon says Dorado Feed "substantially" complete
Sydney-listed Carnarvon Energy on August 17 said that the Feed process for the Dorado development offshore Western Australia is now substantially complete.
“We are pleased that the Dorado development Feed process is now substantially complete and that the project, through this process, has been shown to be technically robust,” Carnarvon CEO Adrian Cook said. “Carnarvon is keen to see the timely sanctioning of the Dorado development and commencement of the construction phase, and we continue to work collaboratively with the operator to achieve this.”
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Santos has an 80% interest in the Dorado project and is the operator. The remaining interest is held by Carnarvon.
Cook said that given the current regional inflationary pressures and supply chain challenges, the risk of cost escalation is “unacceptably high” and requires fiscal discipline until this environment shows signs of stabilising.
The main outstanding matter for the project is the finalisation of the engineering procurement and construction contract for the floating production storage and offloading (FPSO) vessel.
“The joint venture has been working with the relevant contractor to ensure the contract is in an acceptable form. This requires the cost environment to be more stable and more certainty around supply chain capacity,” Carnarvon said. “Because the FPSO represents more than 50% of the expected project cost, it is important that this work scope is carefully contracted and managed, especially in the current supply chain environment.”
Dorado is an integrated oil and gas project which is planned to be developed in two phases. Phase one development involves the production of oil and condensate through a wellhead platform and an FPSO.