The spotlight has shifted to Carnarvon after NOPSEMA had accepted Santos’ Offshore Project Proposal relating to the Dorado development.
Santos, operator of the developing Dorado proposal, a phased liquids and gas development, was purring at the latest cleared hurdle which effectively gives the offshore asset primary regulatory approvals, and the company’s Managing Director and Chief Executive Officer Kevin Gallagher said:
Dorado is a proposed phased liquids and gas development, with an initial phase of liquids development with gas re-injection and the potential for a second phase development to recover and pipe the gas to the Western Australian domestic and LNG markets.
Following the grant of a Production Licence in April 2022, Dorado now has the primary regulatory approvals required to support development.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said Dorado is an exciting development opportunity which is further enhanced by the recent discovery at the adjacent Pavo field.
“Our focus now is to finalise the concept for an integrated liquids and gas development and obtain the remaining approvals required to support a final investment decision,” Mr Gallagher said.
“Dorado will provide a welcome boost to Australia’s energy security, while the potential subsequent gas development provides a future source of supply for Western Australia’s domestic market and LNG projects.
“The best emergency reserve you can have for national liquid fuel security is oil in the ground and the infrastructure in place to produce it when you need it most.”
The Dorado and Pavo fields combined are estimated to contain gross 2C contingent resources of 189 million barrels of liquids and 401 petajoules of gas (Santos-share 147 million barrels and 320 petajoules, respectively).
Santos has an 80 per cent interest in Dorado and a 70 per cent interest in Pavo, and operates both fields. The remaining interests are held by Carnarvon Energy.
Carnarvon Energy, which originally discovered and expedited Dorado, finds itself at a pivotal point on whether it now funds its share of Dorado development, and shifts a gear into producer status, or switches its sole focus to its core explorer business and developing Pavo and other options as it’s Bedout Basin treasure trove.
Carnarvon Managing Director and CEO, Adrian Cook, commented: “Following grant of a Production Licence in April 2022, the Joint Venture has progressed further important regulatory approvals necessary to support sanctioning of the Dorado development.
“Critically, the scope of the OPP will allow for the tie-back of recent discoveries like Pavo, creating the potential for significant upside where other petroleum resources in Exploration Permits WA-437-P and WA-438-P are produced using the Dorado facilities.
“With market volatility continuing in global energy markets, developments like Dorado are critical to ensuring forecast energy demand in the Asian region is met, and will play an important role in Australia’s long-term energy security.”
The Dorado development is located in Production Licence WA-64-L, in which Carnarvon holds a 20% interest. The Pavo field is located in Exploration Permit WA-438-P, in which Carnarvon holds a 30% interest.
