By Australian oil and gas explorer, Carnarvon Energy, has successfully completed the sale of a 10% interest in the offshore Bedout Basin to a unit of Taiwan’s state refiner, CPC Corp. This transaction, as reported in an exchange filing on Wednesday, is a significant milestone for Carnarvon and reinforces its financial position for the development of the world-class Dorado and Pavo oil and gas fields located in the Bedout Basin, approximately 150 kilometers offshore Western Australia.
Carnarvon has reached a sale agreement with CPC, which includes an upfront payment of $56 million. Additionally, upon Dorado reaching a final investment decision (FID), Carnarvon will receive an additional $90 million. This agreement not only boosts Carnarvon’s finances but also solidifies the partnership with CPC in the Joint Venture.
Carnarvon’s Managing Director and Chief Executive, Adrian Cook, expressed his enthusiasm for the collaboration, stating, “With CPC formally joining the Joint Venture, our immediate focus is on working together with them and Santos to achieve a Final Investment Decision on the Dorado development as soon as possible.”
This successful stake sale marks a significant step forward for Carnarvon Energy and positions them favorably for their ambitious plans in the Bedout Basin.
Carnarvon Energy and Santos Joint Venture
In the world of energy exploration and production, joint ventures play a crucial role in pooling resources and expertise to maximize efficiency and success. One such partnership that has been making waves is between Carnarvon Energy and Santos.
Originally, Carnarvon Energy and Santos were the joint-venture partners. However, there has been a recent development in the structure of this partnership. As of now, the Dorado joint venture comprises Santos with 80% equity shares, while Carnarvon holds 10% and CPC holds the remaining 10%. Similarly, for the Pavo project, Santos has the majority stake of 70%, Carnarvon holds 20%, and CPC retains 10%.
Santos has taken on the responsibility of being the operator for both projects. In June 2021, they embarked on the front-end engineering and design work for the Dorado project. This indicates a significant milestone in the progress of the venture.
The Dorado project has immense potential, with estimates suggesting it could hold approximately 162 million barrels of light oil and condensate. These figures account for gross 2C or the best estimate of continent resources basis. Additionally, the nearby Pavo North field has been assessed to contain approximately 43 million barrels of oil on a gross 2C basis.
However, there have been some delays in final investment decisions (FID) for Dorado, as the projected timeline has been pushed back by two years. As it stands now, the FID is expected to be made in 2024. If everything goes according to plan, the Dorado project has the potential to bring in about 90,000 barrels per day of new oil supply.
In conclusion, the partnership between Carnarvon Energy and Santos holds great promise for the future of energy exploration and production. The Dorado and Pavo projects, with their substantial oil reserves, have the potential to significantly boost oil supply. As the venture moves forward, with Santos leading the way as the operator, we can expect further developments and achievements in the energy sector.
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