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Carnarvon Energy (ASX:CVN) and Santos (ASX:STO) gain regulatory approval for Dorado, WA

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ASX:CVN      MCAP $304.1M
14 February 2023 08:08 (AEDT)

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Carnarvon Energy (CVN) has seen its offshore project proposal accepted by the national Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).

Dorado is held in joint venture with Santos (STO), with Carnarvon holding a 20 per cent interest, and is located around 140 kilometres offshore from Port Hedland, Western Australia.  

The proposal was for the Dorado development and, according to Carnarvon Energy, marks an “important progression” in the regulatory approval process to support its sanctioning.  

The accepted offshore project proposal (OPP) covers approval to undertake the Dorado phase one liquids development, including the re-injection of gas to enhance resource recovery.

It will also provide for the incorporation of additional liquids beyond Dorado, such as tying back those from the Pavo field, in which Carnarvon holds a 30 per cent interest.  

“Following grant of a production licence in April 2022, the joint venture has progressed further important regulatory approvals necessary to support sanctioning of the Dorado development,” Carnarvon Managing Director and CEO Adrian Cook said.

“Critically, the scope of the OPP will allow for the tie-back of recent discoveries like Pavo, creating the potential for significant upside where other petroleum resources in Exploration Permits WA-437-P and WA-438-P are produced using the Dorado facilities.”

The MD told investors developments like Dorado are “critical” to ensuring forecast energy demand in the Asian region is met.

Carnarvon Energy last traded at 15 cents, while Santos was at $7.07 on February 13.

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