, , , , ,

Optimising Dorado with Carnarvon

Central revenue

The optimisation of Dorado Phase 1 liquids development is expected to deliver a material uplift in the project’s value.

“Dorado is an outstanding project, and these optimisations to the development concept would result in a more robust project overall,” Carnarvon Energy chief executive officer Philip Huizenga said.

Dorado continues progress towards being final investment decision (FID)-ready by end of 2024. The key optimisation opportunities that are being pursued centre around re-shaping the production rates between 60,000 and 100,000  barrels of oil per day.

Re-shaping of production rates allows for phasing of development wells which would reduce up-front CAPEX and time to first oil.

“Optimising the project with lower upfront CAPEX, faster time to first oil and enhanced economics, would put Carnarvon in a strong position to unlock value for shareholders,” Huizenga said.

“Carnarvon’s estimates for up-front capital expenditure savings are expected to be material to the company.

“With the company’s A$176m (~US$115m) cash balance (December 2023), US$90m development funding cost carry and a prospective debt facility, Carnarvon expects to be fully funded for its share of development costs to first oil under the optimised project.”

The Joint Venture, composed of Santos (80 per cent), Carnarvon (10 per cent) and OPIC Australia has identified several idle floating production storage and offloading (FPSO) that could be re-purposed for the project, which would further reduce the overall cost of the project and time to first oil.

Carnarvon anticipates that overall CAPEX prior to first oil will be below previous guidance of approximately US$2 billion.

“Carnarvon is also very encouraged by Santos’ ongoing commitment to the Dorado Project being FID-ready by end-2024,” Huizenga said.

“I am incredibly proud of the core role Carnarvon is contributing to the optimisation process and I look forward to providing further updates to shareholders as we progress towards sanctioning the Dorado development.”

Subscribe to Energy Today for the latest project and industry news.

Send this to a friend