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- Carnarvon Energy (CVN) pushes back a final investment decision (FID) for its Dorado project in the Roebuck basin in Western Australia until at least 2023
- The company says it is still working to finalise an engineering procurement and construction contract for the project’s floating production storage and offloading vessel
- However, Carnarvon wants to wait for a more stable cost environment and more certainty around supply chain capacity before finalising the contract
- The Dorado project remains under assessment by the National Offshore Petroleum Safety and Environmental Management Authority — a requirement for subsequent approvals to develop the project
- Carnarvon shares are down 17.5 per cent to 16.5 cents at 3:43 pm AEST
Carnarvon Energy (CVN) has pushed back a final investment decision (FID) for its Dorado project in the Roebuck basin in Western Australia until at least 2023.
The company said it was still working to finalise the project’s engineering procurement and construction contract for the floating production storage and offloading (FPSO) vessel, but it wanted to wait for a more stable cost environment and more certainty around supply chain capacity before finalising the contract.
The company’s offshore project proposal remains under assessment by the National Offshore Petroleum Safety and Environmental Management Authority, which is a requirement to gain subsequent approvals for the project’s development.
In any case, Carnarvon has received its production licence and has mostly completed the front-end engineering design for the project’s development.
The company said once it signed the FPSO EPC contract and other key contracts, it would assess its financing options, having already received a number of proposals for senior debt facilities.
This includes potentially divesting a portion of its interest in the project before a final investment decision is made.
Engineering work for the well-head platform and FPSO is nearly complete, with a design to extract oil and gas from the Dorado field and allow for tie-back opportunities such as the Pavo discovery.
Meanwhile, the pre-development work has begun for Pavo, with a discovery assessment report being filed with the regulator, while studies are being undertaken for the development of the resource.
Carnarvon shares were down 17.5 per cent to 16.5 cents at 3:43 pm AEST.
