Carnarvon Petroleum Limited has announced that important progress has been made with the Dorado field development in relation to advancing work on the Floating Production Storage and Offtake (FPSO) vessel and the well head platform.
Pre-Front End Engineering Design (pre-FEED) contracts were recently awarded to three leading contractors. Under the terms of the contracts, the parties will work independently to advance their FPSO designs and mature their vessel construction plans and supply terms. The award of these contracts enables Carnarvon and Joint Venture partner Santos Limited to maintain project schedule.
One of the pre-FEED contractors will be selected at the end of the pre-FEED stage to commence the formal FEED work. The award of the FEED contract is expected to occur later this calendar year. The pre-FEED process will also determine the contracting strategy for the FPSO.
Carnarvon also outlined that Expressions of Interest have now been received from ‘a significant number’ of companies for the fixed well head platform (WHP) that will support the production and ancillary wells and connect to and supply the FPSO.
It is expected that a shortlist of contractors will soon be invited to tender for all or relevant parts of the WHP work including engineering and design, fabrication of jacket and topsides, and transport and installation into the field.
Additional work for this project, including the preparation of the Field Development Plan and Offshore Project Plan, are also reportedly progressing on schedule.
As previously highlighted by the Company, the FEED process for the Dorado field development is a relatively low-cost phase within the total field development.
The Joint Venture intends to progress this phase broadly as scheduled (subject to operational impacts associated with COVID-19 restrictions).
The current schedule has the Final Investment Decision (FID) slated for 2021, however, this will be subject to market conditions at the relevant time.
Carnarvon’s Managing Director, Adrian Cook, said the award of the pre-FEED contracts for the supply of an FPSO is a significant step and demonstrates the momentum which is building within the Dorado development project.
“This is testament to the quality of the project as we have the confidence to enter the next phase of development during this short period of uncertainty,” he said.
“The shortlisted organisations have supplied excellent vessels in recent times and Carnarvon looks forward to working with them during the next phase of the project to ensure we have an optimised technical and financial solution.”
“Along with the great industry response to the expressions of interest for the supply and installation of a WHP, Carnarvon is looking forward to all the necessary items being in place for a FID on the Dorado project in 2021. Progressing the project now provides the Joint Venture with the greatest case to make the final investment decision next year if, as we expect, market conditions have improved.”
The Dorado project resides within petroleum permit WA-437-P. Santos Limited is Operator and holds 80 per cent interest, Carnarvon Petroleum 20 holds the remaining 20 per cent.