PERTH (miningweekly.com) – Oil and gas major Santos has awarded the front-end engineering design (FEED) contract for the floating production, storage and offloading (FPSO) facility for the Dorado project, in the Bedout sub-basin, offshore Western Australia, to Altera Infrastructure (Altera).

The facility is targeting an oil production rate of between 75 000 bbl and 100 000 bbl a day, and the FPSO contract is the project’s largest, comprising engineering, procurement, construction, installation, commissioning and testing of the facility.

Dorado is an integrated oil and gas project which is planned to be developed in two phases. The initial development involves the production of oil and condensate through a well head platform (WHP) and FPSO. Gas will be reinjected in the initial phase to enhance oil and condensate recovery, followed by a planned future phase of gas production to backfill Santos’ domestic gas infrastructure in Western Australia.

Santos told shareholders Dorado is a very low carbon dioxide (CO₂) reservoir with approximately 1.5% CO₂ and reinjection of gas in the initial phase, making it one of the lowest emission intensity oil projects in the region.

The project in June entered the FEED phase, which involves numerous work fronts including the award of contracts for the FPSO and WHP. The FPSO contract will commence with full definition engineering by Altera to confirm the technical requirements for the FPSO and associated disconnectable mooring system.

“This contract is an important milestone for the project and Altera brings extensive FPSO design and operations expertise to the development,” said Santos MD and CEO Kevin Gallagher.

“The FPSO design will provide for the integrated development of both the liquids and the gas resource and retains sufficient flexibility to support future nearby exploration success. A contract for the design, supply and installation of the WHP will be awarded soon.”

The project has a federal government approved Australian Industry Participation Plan ensuring full, fair and reasonable opportunities for Australian industry to compete for work. This is accessible via the Industry Capability Network website.

A final investment decision for the Dorado project is targeted for mid-2022, with first production scheduled for 2026.

The National Offshore Petroleum Safety and Environmental Management Authority has called for public comment on the Dorado development, in which Santos has an 80% interest and is operator. The remaining interest is held by Carnarvon Petroleum.