<article><p class="lead">Australian independent Santos has deferred plans to make a final investment decision (FID) on the 75,000-100,000 b/d <a href="https://direct.argusmedia.com/newsandanalysis/article/2089819">Dorado oil field</a> from next year to 2022, blaming the impact of Covid-19.</p><p>Santos, which is the operator of Dorado in the Carnarvon basin offshore Western Australia with an 80pc stake, now expects to make an FID in the first half of 2022 with first production from the liquids-only phase one development by the end of 2025. The firm has an option to develop a more gas-intensive second phase at Dorado five or six years after the first phase becomes operational. Fellow Australian independent Carnarvon Petroleum owns the other 20pc of Dorado.</p><p>Santos plans to start front-end engineering and design (FEED) work at Dorado in the first half of next year. The pre-FEED competition for the supply of a floating production storage and offtake (FPSO) vessel for the project is well advanced with developers BW Offshore, Modec and Altera, formerly Teekay, all submitting tenders. Santos is looking at options to lease or buy the FPSO. </p><p>Dorado is forecast to cost around $2bn to develop. The field could potentially be one of the largest oil field developments in Australia in the past decade, with a best estimate of contingent resources of around 150mn bl of liquids in the first phase.</p><p>Santos in March cut its <a href="https://direct.argusmedia.com/newsandanalysis/article/2089368">2020 capital expenditure</a> budget by 38pc or $550mn to $900mn following a sharp fall in global oil prices.</p><p class="bylines">By Jo Clarke</p></article>
