Santos Puts A$3bn Dorado Oil and Gas Project on Hold

Australian energy major Santos has made the decision to put its plans for the A$3bn ($1.87bn) Dorado oil and gas project in Western Australia on hold. The project, which was set to be a significant development in the region, has faced delays and uncertainties.

Santos, as the operator of the Dorado joint venture, has chosen not to proceed with the purchase of the FPSO vessel that was previously considered for the project’s first phase. Additionally, the company has decided to postpone entering the Front-End Engineering Design (FEED) stage for the project at this time.

As a result of the deferral of the FEED, the timeline for making a final investment decision on Dorado in 2025 has been pushed back. Santos and its joint venture partners are currently reevaluating the project schedule to determine the next steps.

Joint Venture Ownership

The joint venture behind the Dorado project consists of Santos holding an 80% interest as the operator, while partners Carnarvon and OPIC Australia each have a 10% stake. Together, they are committed to maximizing the value of the Dorado and Bedout Basin assets.

Carnarvon, in a statement, expressed confidence in the project’s potential and outlined plans for further exploration activities, including drilling additional wells in 2026 to fulfill tenure commitments.

However, Carnarvon CEO Philip Huizenga acknowledged disappointment over the delay, citing the high quality of the Dorado project as a reason for the frustration.

Significance of Dorado Oil Field

The Dorado oil field, discovered in 2018, marked the largest oil find on Western Australia’s North West Shelf in thirty years. It is estimated to contain a substantial gross 2C contingent resource of 344 million barrels of oil equivalent.

The field development strategy includes plans for producing oil and condensate from Dorado through a well-head platform connected to an FPSO capable of processing between 75,000 to 100,000 barrels per day.

Despite the current hold on the project, the stakeholders remain optimistic about the long-term prospects of Dorado and are committed to unlocking its full potential in the future.