Santos said that it prefers an FPSO and wellhead platform for its Dorado project offshore Port Hedland, Australia.
At its investor day presentation held on 3 December, Santos released its initial concept select information with respect to the proposed liquids development for the Dorado project. In Phase 1, Santos plans for oil and condensate development followed by future phase of gas export.
Carnarnon, which holds a 20% ownership interest in Dorado (with Santos owning the remaining 80%) said in a statement that the project was currently in the late stages of the concept select phase for the liquids development. The front-end engineering and design (FEED) phase is scheduled to begin early next year. During FEED, the final development and contracting strategy will be selected for key components of the development, like the number of wells and whether the joint venture leases or acquires an appropriate FPSO vessel.
Carnarvon said it has begun early discussions with domestic and international banks who have indicated “strong interest” in financing the majority of its share of the development capital with senior debt. Oil traders have indicated interest in providing structured finance as an additional source of funding to senior debt.
Santos forecast initial oil production from Dorado at somewhere between 75,000 and 100,000 B/D, up from an earlier estimate of 50,000 B/D. It said it expects the development of the field to cost between $1.9 billion and $2.2 billion.