Santos announced award of the FEED contract for the Floating Production, Storage and Offloading (FPSO) facility for the Dorado project, in the Bedout Sub-basin, offshore Western Australia, to Altera Infrastructure (Altera).

The FPSO contract is the project’s largest, comprising engineering, procurement, construction, installation, commissioning and testing of the facility.

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 WA.

Dorado is a very low CO2 reservoir with approximately 1.5 per cent CO2 and reinjection of gas in the initial phase, making it one of the lowest emission intensity oil projects in the region.

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.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “This contract is an important milestone for the project and Altera brings extensive FPSO design and operations expertise to the development.

“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.”

President, Altera Infrastructure Production Chris Brett said: “We thank Santos for putting their confidence in Altera and are eager to apply our over 30 years of FPSO competence and experience during FEED to deliver an FPSO design that meets the needs of the Dorado development while also bringing forward the latest emission reducing solutions in line with our vision to lead the industry to a sustainable future.”

The project has a Federal Government approved Australian Industry Participation Plan ensuring full, fair and reasonable opportunities for Australian industry to compete for work. This is accessible via the Industry Capability Network website.

Santos has an 80 per cent interest in the Dorado project and is operator. The remaining interest is held by Carnarvon Petroleum.

About Santos

Santos’ corporate purpose is to provide sustainable returns for our shareholders by supplying reliable, affordable and cleaner energy to improve the lives of people in Australia and Asia.
Santos has a clear and consistent strategic framework of Transform Build Grow to deliver this vision. At the heart of this framework is a disciplined low-cost operating model that drives decisions around capital allocation and enables sustainable growth and development throughout the cycle.
Santos has been a committed participant in PNG for over 40 years and enjoys a strong working relationship with the PNG Government and its PNG LNG joint venture partners ExxonMobil, JX Nippon, Kumul, MRDC and Oil Search. Santos is supportive of the backfill and expansion of PNG LNG through the development of the P’nyang field and other opportunities. Santos also has a strong working relationship with Total through the GLNG joint venture.
Our strategic vision complements Oil Search’s disciplined three phase strategy to Focus, Deliver and Evolve. We are completely aligned regarding the need for a low-cost base and capital efficiency. We share the same aspirations for the delivery of the LNG expansion in PNG. In relation to Alaska, we would be supportive of Oil Search working towards FEED and FID as publicly announced. We are committed to ESG and measurable action on sustainability.

About Altera

Altera provides critical infrastructure assets to the offshore energy industry. Our fleet consists of Floating Production, Storage and Offloading (FPSO) units, Shuttle Tankers, Floating Storage and Offtake (FSO) units, Long-distance Towing and Offshore Installation Vessels and a Unit for Maintenance and Safety (UMS).