Santos Ltd. has launched the front-end engineering and design (FEED) stage for its Dorado oil and gas project in the Bedout subbasin offshore northwest Western Australia.
The field, in permit WA-436-P in water depth of 95-160 km north of Port Hedland, will be developed in two phases.
Phase 1, with an estimated cost of $2 billion, will involve the production of oil and condensate through a wellhead platform and a floating production, storage, and offtake (FPSO) vessel. All gas produced (including 1.5% carbon dioxide content) will be reinjected into the reservoir to maintain reservoir pressure and enhance liquids recovery. This will also ensure the oil development is a low-emission oil project.
Phase 2 will concentrate on development of the natural gas and provide future backfill supply to Santos’ current domestic gas infrastructure in Western Australia.
Dorado is expected to begin production at a rate of 75,000-100,000 b/d of high-quality crude that will fetch a premium to regional pricing benchmarks.
FEED contracts for the platform and FPSO are being finalized and should be awarded during the next few months.
FEED for Phase 1 is scheduled to lead to a final investment decision in mid-2022.
Phase 1 is expected to tap recoverable reserves of around 160 million bbl.
Potential future tie-in opportunities include the nearby Pavo and Apus prospects that will be drilled early next year, the company said.
Dorado was discovered by Quadrant Energy Ltd. in 2018. Santos acquired Quadrant in August 2018 and drilled two successful appraisal wells in 2019.
Santos has 80% and operatorship of the field. Carnarvon Petroleum Ltd. holds the remaining 20%. As it has done with Barossa in the Timor Sea, Santos is looking to farm down its interest and is currently seeking interested parties to take non-operated equity in Dorado and potentially the company’s other assets in Western Australia.