Carnarvon says fully funded to deliver Dorado project to FID

Australian energy company Carnarvon Energy on May 6 expressed confidence in being fully funded to deliver the Dorado oil and gas project offshore Western Australia to its final investment decision (FID). 

The company anticipates being fully funded for its share of development costs to achieve FID in 2014. With a cash balance of A$181mn ($120mn), $90mn in development funding cost carry, and access to a prospective debt facility, the company is well-prepared to advance the project.

Carnarvon said it remains open to exploring alternative transactions to accelerate value realisation and is collaborating with J.P. Morgan to assess strategic options.

“Carnarvon is well positioned to deliver the Dorado project through to a final investment decision this year, and onto first oil,” Carnarvon CEO, Philip Huizenga, commented. “Our strengthened focus on Dorado and preserving our significant cash balance for this project gives us confidence to achieve these outcomes.”

Last year, Carnarvon entered into an agreement to sell a 10% interest in its Bedout assets, including the Dorado field, to OPIC Australia, a subsidiary of Taiwan's CPC Corporation. This transaction will result in a corresponding decrease in Carnarvon's ownership across all assets.

Santos holds an 80% interest in the Dorado field, having received regulatory approval for the project in February 2023. 

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. The second phase will see gas recovery and supply via a pipeline to the Western Australian domestic and LNG markets.