Australia’s Santos delays FID on Dorado oil field
Australian independent Santos will now target a 2025 final investment decision (FID) on its 80pc-owned Dorado oil project in Western Australia (WA), after deferring it in 2022 and last year indicating a 2024 decision.
Dorado's 10pc stakeholder Australian independent Carnarvon Energy said the joint venture (JV) will evaluate a lower capital expenditure (capex) option by reducing capacity below the previously guided 75,000-100,000 b/d and phasing development wells, targeting front-end engineering and design re-entry later in 2024 "once the JV secures the best option vessel or hull".
Carnarvon said overall capex prior to the first oil from the offshore field will now be below its previous guidance of $2bn. Dorado JV's other shareholder is Taiwan's state-owned CPC with 10pc.
Santos reported higher April-June oil and gas output than the previous quarter on 18 July, with production from the 7.8mn t/yr Gladstone LNG (GLNG) in Queensland state up on a year earlier. It produced 22.2mn bl of oil equivalent (boe), up by 2pc from 21.8mn boe during January-March because of the return of WA's Devil Creek gas plant following a maintenance shutdown, as well as higher liquids production following cyclone-related disconnections during January-March. But output was 3pc below the year-earlier figure of 22.8mn boe.
GLNG is on track to swap 18PJ (480mn m³) of gas into the domestic market over April-September 2024, Santos said, with the project maintaining its guidance of around 6mn t of LNG shipped for the year to 31 December.
Production at the 6.9mn t/yr ExxonMobil-operated PNG LNG in Papua New Guinea (PNG) was down on January-March with natural decline at the Hides field, partially offset by high compression reliability from the Santos-operated Gobe and Kutubu fields. Finalisation of drilling and completion of operations activities at PNG LNG's Angore C1 and C2 wells has been achieved with both wells perforated for production. Angore project teams are now starting tie-in execution with production of 350mn ft³/d (10mn m³/d) expected during October-December.
The $4.6bn Barossa backfill project in the Timor Sea is 77pc complete, Santos said, with pipeline testing completed in June and on track for its first gas in July-September 2025 within its cost guidance.
Santos' 1.7mn t/yr Moomba carbon capture and storage project in South Australia is mechanically complete and on track to raise injection of Cooper basin gas plant carbon dioxide during July-December.
Santos maintained its 2024 production guidance of 84mn-90mn boe and will release its half-year results on 21 August.
| Santos results | |||||
| Apr-Jun '24 | Jan-Mar '24 | Apr-Jun '23 | y-o-y % ± | q-o-q % ± | |
| Volumes ('000 t) | |||||
| GLNG (100pc) | 1,338 | 1,649 | 1,263 | 6 | -19 |
| Darwin LNG (100pc) | 0 | 0 | 134 | 100 | 0 |
| PNG LNG (100pc) | 2,001 | 2,009 | 2,065 | -3 | 0 |
| Santos' equity share of LNG sales | 1,264 | 1,352 | 1,333 | -5 | -7 |
| Financial | |||||
| LNG sales revenue ($mn) | 762 | 901 | 838 | -9 | -15 |
| Total sales revenue ($mn) | 1,313 | 1,398 | 1,336 | -2 | -6 |
| LNG average realised price ($/mn Btu) | 11 | 13 | 12 | -4 | -10 |
| Oil price ($/bl) | 89 | 89 | 83 | 7 | 0 |
| Source: Santos | |||||
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