Fossil energy – Western Australia
Santos has launched the front-end engineering and design (FEED) stage for its Dorado oil and gas project in the Bedout subbasin offshore northwest Western Australia.
The field, in permit WA-436-P in water depth of 95-160 km north of Port Hedland, will be developed in two phases.
Phase 1, with an estimated cost of $2 billion, will involve the production of oil and condensate through a wellhead platform and a floating production, storage, and offtake (FPSO) vessel.
All gas produced (including 1.5% carbon dioxide content) will be reinjected into the reservoir to maintain reservoir pressure and enhance liquids recovery.
This will also ensure the oil development is a low-emission oil project.
Phase 2 will concentrate on development of the natural gas and provide future backfill supply to Santos’ current domestic gas infrastructure in Western Australia.
Dorado is expected to begin production at a rate of 75,000-100,000 b/d of high-quality crude that will fetch a premium to regional pricing benchmarks.
FEED contracts for the platform and FPSO are being finalized and should be awarded during the next few months.
FEED for Phase 1 is scheduled to lead to a final investment decision in mid-2022.
Phase 1 is expected to tap recoverable reserves of around 160 million bbl.