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Altera Infrastructure (formerly Teekay Offshore) has been chosen to provide front-end engineering and design (FEED) work for the Dorado oil project’s floating production, storage and offloading (FPSO) vessel offshore Western Australia.
The FPSO contract is the project’s largest, comprising engineering, procurement, construction, installation, commissioning and testing of the facility, Santos said today.
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.
“Dorado is a very low 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,” claims Santos.
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,” said Santos.
“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,” said Santos chief executive Kevin Gallagher.
The field’s first phase of development could potentially mark one of the largest oil field developments seen in Australia over the past decade. Phase one will involve the production of oil and condensate through a well head platform and transported by two kilometres of subsea infrastructure to an FPSO.
This concept 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 with initial gross oil production expected between 75,000 and 100,000 barrels per day. Santos has said the high-quality crude is likely to earn a premium to regional pricing benchmarks.
Santos is also seeking buyers for a share in the development that is expected to initially cost $2 billion.
Santos has an 80% interest in the Dorado project and is operator. The remaining interest is held by Carnarvon Petroleum.