The operator of the Dorado oil and gas field, Santos, has decided to postpone the final investment decision for the field's development until after a 2027 exploration drilling campaign. This measured approach delays the revival of one of Australia's largest unexploited oil assets, contrasting with partner Carnarvon Energy's desire for accelerated development.

Development Plan and Current Status

The suspended Phase 1 liquids development concept, refined in 2024, involves a wellhead platform supporting up to 12 wells tied back to a floating production, storage and offloading vessel. This configuration was designed for efficient production and allows for potential future tie-backs from nearby fields like Pavo. Current pre-development activities include progressing procurement of long-lead items, continuing the environmental approval process, and tendering for a suitable rig ahead of the 2027 drilling campaign.

Rationale for Delay and Exploration Focus

Santos wants to evaluate the results of the planned 2027 exploration drilling campaign in the Bedout sub-basin before committing to the Dorado development. The campaign will target the northern play fairway to test a very large prospect with significant gas potential. The goal is to discover additional gas resources that could underpin a future gas export development (envisioned as Phase 2), complementing the already discovered liquids resources at Dorado and Pavo.

Resource Potential and Technical Work

The discovered gross best-estimate contingent resources in the Dorado area total 249 million barrels of light oil/condensate and 1.1 trillion cubic feet of gas. The area also holds significant upside, with mean prospective resources of approximately 1.6 billion barrels of liquids and 9 Tcf of gas. Recent technical work, including a basin-wide seismic reprocessing project, has provided high-resolution data covering over 80% of the exploration permits. This improved imaging has identified potential for previously undetected structural and stratigraphic features, enhancing prospectivity interpretation.

Partnership Structure

The Dorado field is located in permit WA-64-L, offshore Western Australia. Santos operates the asset with an 80% interest, while partners Carnarvon Energy and OPIC (Taiwan’s CPC Corporation) each hold a 10% interest.