Page 17 - AsianOil Week 26 2021

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the east coast, exporting to Asia remains their Dorado is expected to have an initial FEED contracts for the FPSO and WHP
main market, meaning Asian LNG prices are gross oil production rate of between design are being finalised and are expected to
the most relevant benchmark in calculating 75,000 to 100,000 barrels per day of high- be awarded over the next few months. This
LNG netback prices for the east coast gas quality crude that is expected to earn a follows the competitive pre-FEED phase of the
market.” premium to regional pricing benchmarks. project where top-tier contractors have been
Very importantly, the ACCC again “Entering FEED for the Dorado engaged for these major work packages.
emphasised: project is a significant milestone and Santos has an 80 per cent interest in the
The published prices do not represent has the project on schedule for a final Dorado project and is operator. The remaining
the ACCC’s view of a fair price for sellers or investment decision around mid-2022, interest is held by Carnarvon Petroleum.
buyers, or a regulated price cap. building on the investment decision on Santos is currently undertaking a process
“With more than 100 agreements to supply the Barossa gas project earlier this year,” to seek interest from the market in non-
gas to major domestic customers since 2012, Mr Gallagher said. operated equity in Dorado and potentially
and independent advice finding that local “Dorado is on track to be the first other WA oil assets.
prices are not higher than those paid by development in the Bedout Sub-basin, with SANTOS, June 29, 2021
overseas customers, our markets are working,” its high-quality reservoirs and shallow-water
he said. setting, making it a very cost-competitive Update on Maari acquisition
“Even greater transparency measures are project globally.
on the way with the further development “Dorado is also a very low CO2 reservoir Jadestone Energy, an independent oil and
of the Australian Gas Hub at Wallumbilla with approximately 1.5 per cent CO2, and gas production company focused on the Asia
and new gas market transparency measures with all gas reinjected in the initial phase, Pacific region, is pleased to provide an update
recently endorsed by COAG. making it one of the lowest emission intensity on the planned completion of the acquisition
“The report also found there is no basis for oil projects in the region. of the 69% operated interest in the Maari
any linking of a netback price to the Henry Hub “After the initial phase of liquids asset, shallow water offshore New Zealand.
in the US. US gas prices have no relevance to the production, gas export from the development Further to the Company’s announcement
cost of producing gas in Australia. The US and allows for a future source of supply into on 9 June 2021, we are pleased to confirm that
Australian markets are very different, with the our domestic gas infrastructure in Western following discussions with the seller OMV
US many times larger. The Henry Hub services Australia. New Zealand (OMV NZ), both Jadestone
330.1m people and is connected to 485,000 “Potential nearby tie-in opportunities, and OMV NZ have agreed to extend the long
kilometres of pipeline compared to Australia’s starting with the Pavo and Apus prospects stop date under the Maari sale and purchase
population of just 25.7m with around 40,000km to be drilled early next year, could be easily agreement to 31 August 2021. Both OMV NZ
of pipelines.” tied-back into the Dorado infrastructure and and the Company continue to work to satisfy
APPEA, July 1, 2021 materially increase the value of the project, the remaining outstanding conditions and to
due to the very low cost of development,” Mr complete the transaction.
Santos launches Dorado Gallagher said. JADESTONE ENERGY, June 30, 2021

FEED

Santos today announced the launch of Front-
End Engineering and Design (FEED) for
the Dorado project in the Bedout Sub-basin,
offshore Western Australia.
Dorado is an integrated oil and gas project
which is planned to be developed in two
phases. Phase 1 development involves the
production of oil and condensate through
a well head platform (WHP) and floating
production, storage and offloading facility
(FPSO). Phase 1 has an estimated gross capital
cost of approximately US$2 billion, assuming
a purchased FPSO.
The selected concept of a FPSO and WHP
allows for the optimal integrated development
of both the gas and liquids resource and
retains sufficient flexibility to support future
exploration success. Gas will be reinjected
in the initial phase to enhance oil and
condensate recovery.
Phase 2 will then develop the significant
natural gas resources in the Bedout Sub-basin
and provide future backfill supply to Santos’
current WA domestic gas infrastructure assets.
Santos Managing Director and Chief
Executive Officer Kevin Gallagher said

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