[Australia] Dorado FPSO

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escveritas
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[Australia] Dorado FPSO

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Dorado FEED Contract Awarded

Today, 23rd Aug 2021, Santos announced that the FEED contract for the FPSO for the Dorado project, in the Bedout Sub-basin, offshore Western Australia, has been awarded to Altera Infrastructure.

We thank Santos for putting their confidence in Altera and are eager to apply our over 30 years of FPSO competence and experience during FEED to deliver an FPSO design that meets the needs of the Dorado development while also bringing forward emission reducing solutions in line with our vision to lead the industry to a sustainable future.

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 WA.

Dorado is a very low CO2 reservoir with approximately 1.5 per cent CO2 and reinjection of gas in the initial phase, making it one of the lowest emission intensity oil projects in the region.

In June, the project entered the Front-End Engineering and Design (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.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “This contract is an important milestone for the project and Altera brings extensive FPSO design and operations expertise to the development.

“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.”

President, Altera Infrastructure Production Chris Brett said: “We thank Santos for putting their confidence in Altera and are eager to apply our over 30 years of FPSO competence and experience during FEED to deliver an FPSO design that meets the needs of the Dorado development while also bringing forward the latest emission reducing solutions in line with our vision to lead the industry to a sustainable future.”

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.

Santos has an 80 per cent interest in the Dorado project and is operator. The remaining interest is held by Carnarvon Petroleum.
escveritas
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Re: Dorado FPSO

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Sembcorp Marine to Execute Front-End Engineering Design Work for Dorado FPSO Project

Singapore, 10 September 2021: Sembcorp Marine Ltd, through its wholly-owned subsidiary, Sembcorp Marine Rigs & Floaters Pte Ltd, has secured an exclusive contract from Altera Infrastructure GP LLC, to undertake the Front-End Engineering Design (FEED) work for the Floating Production, Storage and Offloading (FPSO) facility for the Dorado project.

Located in the Bedout Sub-basin, offshore Western Australia, Dorado is an integrated oil and gas project which is expected to have an initial oil production of 75,000 to 100,000 barrels per day, with subsequent development of significant gas resources. Operated by Australian energy company, Santos Ltd, Dorado will be one of the lowest emission intensity oil and gas projects in the region, given its very low CO₂ reservoir with approximately 1.5 per cent CO₂ and plans for the reinjection of gas in the initial phase.

Sembcorp Marine Head of Rigs & Floaters Mr William Gu said, “We are excited to work with Altera Infrastructure and Santos to develop Dorado. The award of the FEED contract affirms Sembcorp Marine’s engineering, procurement and construction (EPC) capabilities, and reinforces our credentials as a leading engineering solutions provider for the offshore, marine and energy industries.”

The FEED work is expected to be completed by the second quarter of 2022. This is the Group’s third EPC project in collaboration with Altera Infrastructure, following the successful delivery of FPSO Pioneiro de Libra and FPSO Petrojarl Cidade de Itajai in 2017 and 2012 respectively.

The FEED contract is not expected to have any material impact on the net tangible assets and earnings per share of the Group for the year ending 31 December 2021.
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Re: Dorado FPSO

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Highlights
• Dorado development FEED is now substantially complete
• Production Licence has been awarded
• OPP continues to be assessed by NOPSEMA
• In the current inflationary cost environment and period of supply chain uncertainties, a prudent approach is being adopted which does not support FID in 2022
• The Joint Venture remains focused on value enhancement through further Bedout drilling and optimisation of an integrated Dorado development concept
• Carnarvon’s financing process, including potential divestment, is continuing to progress



Carnarvon Energy Limited (“Carnarvon”) (ASX:CVN) is pleased to provide the following update on the Dorado development occurring within Production License WA-64-L, and Pavo pre-development studies in Exploration Permit WA-438-P.

Carnarvon Managing Director and CEO, Mr Adrian Cook, said:
“We are pleased that the Dorado development FEED process is now substantially complete and that the project, through this process, has been shown to be technically robust. Carnarvon is keen to see the timely sanctioning of the Dorado development and commencement of the construction phase, and we continue to work collaboratively with the operator to achieve this. That said, given the current regional inflationary pressures and supply chain challenges, the risk of cost escalation is unacceptably high and requires fiscal discipline until this environment shows signs of stabilising.
The analysis of the Pavo discovery to date shows that this is a tremendous resource with the potential to generate a significant amount of value for Carnarvon shareholders by utilising the proposed Dorado facilities. Accordingly, the Joint Venture is undertaking detailed studies to optimise an integrated Dorado development concept.”

Dorado development

The Dorado Front End Engineering and Design (“FEED”) process is substantially complete and has progressed to the point of the Dorado development being close to Financial Investment Decision (“FID”) ready.

The main outstanding matter is the finalisation the Engineering Procurement and Construction (“EPC”) contract for the Floating Production Storage and Offloading (“FPSO”) vessel. The Joint Venture has been working with the relevant contractor to ensure the contract is in an acceptable form. This requires the cost environment to be more stable and more certainty around supply chain capacity. Because the FPSO represents more than 50% of the expected project cost, it is important that this work scope is carefully contracted and managed, especially in the current supply chain environment.

The engineering work for the well-head platform (“WHP”) and FPSO is essentially complete, with a robust technical design able to extract the oil and gas from the Dorado field as planned and allowing for further tie-back opportunities such as Pavo. The initial development incorporates 10 wells being drilled into the four reservoirs (Caley, Baxter, Crespin and Milne) and the hydrocarbons being produced via a 16-slot WHP to an FPSO. The FPSO has a design capacity to process 100,000 barrels of oil per day, along with 215 million scf/day of gas injection and storage for around 1 million barrels of oil & condensate.
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