Oz Dorado Partners to Continue Work Despite Market Turmoil

Carnarvon Petroleum and Santos will proceed with the Dorado development work and focus on starting front end engineering and design (Feed) as planned despite the spread of Covid-19 and fall in oil prices, Carnarvon said March 16 in a statement.

“The sheer size and nature of the Dorado field means that it is a strong and robust project which is expected to produce at globally competitive capital and operating costs per barrel. On the Dorado fieldwork, the Carnarvon team is working closely with the operator on a variety of components that are required to formally enter the Feed phase,” the company said. “At this time there is nothing preventing the commencement of Feed nor its ongoing work throughout this and next year. This is a priority for Carnarvon and the recent global events have not affected this position.”

The Dorado oil and gas field, one of the biggest finds off Australia in recent years with 283mn barrels of oil equivalent proven and contingent resources, is in permit WA-437-P offshore Western Australia. Carnarvon, the discoverer, holds a 20% interest while the rest 80% is held by Santos (operator).

According to Carnarvon, the exploration prospects around Dorado, such as Pavo and Apus, are looking attractive on the new Keraduren 3D seismic data. There are also new prospects showing up on the 3D seismic data, which the company said it looks forward to maturing for presentation to shareholders in due course.

Carnarvon CEO, Adrian Cook said that the COVID-19 virus issue and low oil prices will be resolved in time. “We are of the view that the most appropriate course of action at the current time is to continue to focus on the delivery of our plans, and that includes supporting the operator in advancing the Dorado development. Importantly, through careful management, we are in a position to proceed with our plans because of the very strong financial position of the company,” Cook said.