Carnarvon Petroleum expects front end engineering design (FEED) work at the Dorado joint venture project in Western Australia to commence shortly following appraisal results.
Company chairman Peter Leonhardt said the field development concepts were well advanced with the project rapidly taking shape.
“I look forward to reaching key milestones on the path to the final investment decision (FID). Fortunately, the robust economics emerging from this work have enabled the work plan to progress substantially as envisaged, notwithstanding the impact of the current uncertainties in energy markets,” Leonhardt said.
In Carnarvon’s 2020 annual report, the company commended joint venture operator Santos for its efforts in ensuring the Dorado appraisal was completed safely and successfully.
“The quality of Dorado’s operator is a key strength of the project and I know that our team very much appreciates the opportunity to work with them,” Leonhardt added.
Carnarvon managing director and chief executive officer Adrian Cook said the Dorado project had been confirmed as a large oil and condensate-rich resource that was rapidly maturing into a highly attractive development project.
With the JV already agreeing on a development concept that focuses on the production of the oil and condensate, current work is centred on the engineering and design of the production facilities and determining the cost to construct the field.
“This process will advance into the 2021 calendar year before, subject to market conditions, the JV making a decision to commence the construction phase,” Cook said.
Carnarvon reported that the Dorado project’s development concept was being designed to accomodate liquids production of around 100,000 barrels per day, with Santos providing initial flow rate guidance of 75,000 to 100,000 barrels per day.
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