Santos launches Dorado Feed
Australian oil and gas explorer Santos June 29 announced the launch of front-end engineering and design (Feed) for the Dorado project in the Bedout sub-basin, offshore Western Australia (WA).
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 well head platform (WHP) and floating production, storage and offloading facility (FPSO). This phase has an estimated gross capital cost of approximately US$2bn, assuming a purchased FPSO, Santos said.
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Santos said that the selected concept of an FPSO and WHP allows for the optimal integrated development of both the gas and liquids resource and retains sufficient flexibility to support future exploration success. Gas will be reinjected in the initial phase to enhance oil and condensate recovery.
Phase two will then develop the natural gas resources in the Bedout sub-basin and provide future backfill supply to Santos' current WA domestic gas infrastructure assets.
Santos Managing CEO Kevin Gallagher said Dorado is expected to have an initial gross oil production rate of between 75,000 to 100,000 barrels/day of high-quality crude that is expected to earn a premium to regional pricing benchmarks.
"Entering Feed for the Dorado project is a significant milestone and has the project on schedule for a final investment decision around mid-2022, building on the investment decision on the Barossa gas project earlier this year," Gallagher said.
"Dorado is also a very low CO2 reservoir with approximately 1.5% CO2, and with all gas reinjected in the initial phase, making it one of the lowest emission intensity oil projects in the region,” he added.
Gallagher said that potential nearby tie-in opportunities, starting with the Pavo and Apus prospects to be drilled early next year, could be easily tied back into the Dorado infrastructure and materially increase the value of the project, due to the very low cost of development.
Feed contracts for the FPSO and WHP design are being finalised and are expected to be awarded over the next few months, Santos said.
Santos has an 80% interest in the Dorado project and is the operator. The remaining interest is held by Carnarvon Petroleum. The company said it is currently undertaking a process to seek interest from the market in non-operated equity in Dorado and potentially other WA oil assets.