Santos has awarded a front end engineering contract for design, construction, and installation of the Dorado wellhead platform to Sapura Energy.
The oil and gas major announced in late June it had entered front end engineering and design, and selected Altera Infrastructure earlier this week for feed work on the floating offshore production vessel.
The company is the operator of Dorado project with an 80 per cent interest share, while 20 per cent will be held by Carnarvon Petroleum.
Santos will use the unmanned wellhead platform to host development and gas reinjection wells, and it will be located 90 metres over the Dorado oil and gas field.
Managing director and chief executive Kevin Gallagher said this contract would be last significant commitment before the final investment decision on Dorado that is due mid next year.
“The (wellhead platform) is a critical component of the development requiring a company with Sapura’s deep construction and installation experience,” he said.
“Dorado is also a very low CO2 reservoir with approximately 1.5 per cent CO2, and with all gas reinjected in the initial phase, making it one of the lowest emission intensity oil projects in the region.
“The design allows for the integrated development of both the gas and liquids resource and retains sufficient flexibility to support future exploration success, with the Pavo and Apus prospects to be drilled early next year.”
The federal government approved Australian industry participation plan for the project can be accessed through the Industry Capability Network website.
Santos’ share price was down by 2 per cent to trade at $6.03 at the time of writing.
