Offshore staff
WEST PERTH, Australia — Santos aims to have the Dorado oil and gas project offshore Western Australia FID-ready by the end of 2024, Carnarvon Energy said in an update.
The partners have been re-validating their previously chosen concept of an initial Phase 1 liquids development, with production and export of light oil and re-injection of gas back into the subsurface reservoir.
Economic improvement opportunities under review include optimizing the production rate to allow phased timing of wells. The potential revised capacity of 60,000 bbl/d to 100,000 bbl/d could mean that only some of the wells would need to be drilled prior to first oil.
Others could then be added during production, funded through project cash flows.
This should reduce both the upfront capital outlay and the time to first oil, Carnarvon claimed, improving project value and returns. The company expects overall capex prior to first oil to now be below its previous guidance of ~$2 billion.
Under the original plan, the partners were looking at converting an existing tanker hull into an FPSO with construction of new process equipment, a turret, accommodation and utilities. Now they are assessing FPSO redeployment options to further optimize costs and the time to first oil.
The option remains for a Phase 2 rich gas export development after a period of reinjection, possibly supporting a broader gas export development including other accumulations across the Bedout Sub-basin pending future exploration success.
However, further exploration drilling has been deferred to at least 2025 due to a scarcity of suitable rigs in Australia.
