Singapore’s Sembcorp Marine will carry out front-end engineering design (FEED) work for the floating production, storage and offloading (FPSO) facility that will form part of Santos’ Dorado development offshore Australia.
Altera Infrastructure (formerly Teekay Offshore), which is leading the FEED work for the Dorado oil project’s FPSO vessel, hired the Singapore yard.
The FEED work is expected to be completed by the second quarter of 2022, Sembcorp said in a statement. This is the yard’s third engineering procurement and construction (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, added Sembcorp.
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.
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.