Photo by: Santos
PERTH (miningweekly.com) - The National Offshore Petroleum Safety and Environmental Management Authority (Nopsema) has accepted oil and gas major Santos' offshore project proposal (OPP) for the Dorado development.
Santos said on Tuesday that with the grant of a production licence in April of last year, the project now had the primary regulatory approvals in place to support development.
“Our focus now is to finalise the concept for an integrated liquids and gas development and obtain the remaining approvals required to support a final investment decision,” Santos MD and CEO Kevin Gallagher said.
“Dorado will provide a welcome boost to Australia’s energy security, while the potential subsequent gas development provides a future source of supply for Western Australia’s domestic market and liquefied natural gas (LNG) projects.
“The best emergency reserve you can have for national liquid fuel security is oil in the ground and the infrastructure in place to produce it when you need it most.”
Dorado is a proposed phased liquids and gas development, with an initial phase of liquids development with gas re-injection and the potential for a second phase development to recover and pipe the gas to the Western Australian domestic and LNG markets.
The accepted OPP covers approval to undertake the Dorado Phase 1 liquids development, including the reinjection of gas to enhance resource recovery, as well as tie-back future resources within the ‘project area’ covered by the OPP to augment Dorado production.
This means proximate resources, like the recently discovered Pavo field, could potentially be tied-back and produced using the Dorado floating, production, storage and offloading vessel.
The project is being jointly developed by Santos and ASX-listed Carnarvon Energy, which on Tuesday welcomed the Nopsema approval.
“Following grant of a production licence in April 2022, the joint venture has progressed further important regulatory approvals necessary to support sanctioning of the Dorado development,” said Carnarvon MD and CEO Adrian Cook.
“Critically, the scope of the OPP will allow for the tie-back of recent discoveries like Pavo, creating the potential for significant upside where other petroleum resources in exploration permits WA-437-P and WA-438-P are produced using the Dorado facilities.
“With market volatility continuing in global energy markets, developments like Dorado are critical to ensuring forecast energy demand in the Asian region is met, and will play an important role in Australia’s long-term energy security.”
The Dorado and Pavo fields combined are estimated to contain gross 2C contingent resources of 189-million barrels of liquids and 401 PJ of gas, with Santos’ share amounting to 147-million barrels and 320 PJ, respectively.