Carnarvon Energy continues to optimise the Dorado Phase 1 liquids development project, which is expected to improve project economics.
The company announced that the conceptual reshaping of the initial liquids development project has the opportunity to reduce the total capital outlay, prior to first oil.
As of the end of the financial year, Carnarvon Energy noted a strong balance sheet with $180 million cash, no debt and US$90 million Dorado development free carry.
As part of the reshaping of the project, the company is now assessing floating production storage and offloading (FPSOs) redeployment options along with other donor hulls for FPSO conversion.
Timing for the final investment decision (FID) is expected to be slightly later than previously announced, to allow the joint venture to assess the optimisation and redeployment opportunities.
“While the main priority for the company is to move towards FID and subsequently oil production, Carnarvon continues to make progress on our strategic objectives as outlined late last year,” Carnarvon chief executive officer Philip Huizenga said.
“We look to maximise value by supporting progress on Dorado and be reviewing options to accelerate this value, with J.P Morgan being appointed to explore alternative transaction options.”
At the close of the quarter, Rob Black has assumed the chair role for the company from Bill Foster, with Foster to remain on the board as a non-executive director.
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