Project Overview

Dorado is a deferred oil, condensate, and gas development in the Bedout Sub-basin off the coast of Western Australia. It is operated by Santos (80%) in a joint venture with Carnarvon Energy (10%) and OPIC Australia (10%, a CPC Corporation Taiwan subsidiary). 

Built in 2 phases, the Phase 1 concept centres on a wellhead platform tied back to a floating production, storage and offloading (FPSO) vessel designed to process, stabilise, store and offload light oil/condensate, with associated gas handling and reinjection, at initial rates of about 75,000–100,000 barrels of oil per day.

Phase 2 is built to recover and export the gas. It would require separate assessment under environmental regulatory approval processes, including a separate OPP, if considered commercially and technically viable.

Early estimates placed Phase 1 capital expenditure in the range of USD 2 billion, with first oil originally targeted around 2027–2028 subject to a final investment decision. However, in January 2025, Santos deferred the project by deciding not to proceed with FPSO acquisition or front-end engineering and design (FEED), pushing back the expected Final Investment Decision  (FID) and prompting a reassessment of the Bedout Basin resource base. 

Carnarvon's January 2026 Quarterly Activities Report confirmed the joint venture's latest resource assessment: 249 million barrels of light oil and condensate plus 1.1 trillion cubic feet of gas on a gross 2C (contingent resource) basis for Dorado and surrounding fields, alongside substantial upside, approximately 1.6 billion barrels of liquids and 9 trillion cubic feet of gas on a mean prospective resource basis across the broader Bedout Sub-basin acreage.

FPSO Dorado Location

The FPSO Dorado is located in the Bedout Sub-basin. It is situated in Commonwealth waters approximately 140 km offshore from Port Hedland, Western Australia, within a water depth of approximately 70 to 120 m. 

FPSO Dorado Map

Technical Specification (Phase 1 Concept)

Project Background

The Phoenix exploration campaign led directly to the 2018 Dorado discovery, assessed at the time to hold approximately 162 million barrels of light oil and condensate plus 748 billion cubic feet of gas on a gross 2C contingent resource basis (a combined 344 million barrels of oil equivalent). 

A 2019 appraisal programme de-risked the discovery, and Santos formally launched the Dorado FEED process in 2021 for both the FPSO and WHP work packages, following a competitive pre-FEED phase in which top-tier contractors were engaged. At that stage, Phase 1's estimated gross capital cost was approximately USD 2 billion, assuming a purchased FPSO.

Through 2023 and into mid-2024, the joint venture worked to re-validate and optimise the Phase 1 concept, reviewing phased drilling approaches and, most consequentially, FPSO redeployment and donor-hull conversion options, seeking to reduce the project's capital intensity below the original USD 2 billion guidance. 

By July 2024, Carnarvon was reporting positive progress toward FEED re-entry later that year and a 2025 FID target, while the joint venture assessed several idle FPSOs, including the Nganhurra, as potential lower-cost alternatives to a full conversion or new-build. 

On January 21, 2025, Santos announced it would not, after all, purchase the Nganhurra and would not enter FEED at that stage, deferring the 2025 FID target with no replacement date specified. The subsequent sale of the Nganhurra to BW Offshore, removing it entirely as a future Dorado option, underscored that this was not a pause but a genuine reset of the project's technical pathway. 

In 2026, the Bedout Basin offshore Western Australia is moving into a real drilling phase. Regulators (NOPSEMA) have been told about a program that can drill up to seven exploration/appraisal wells between late 2026 and 2031. Santos has publicly said it is ready to start this multi‑well program from Q3 2026, subject to approvals. 

Carnarvon Energy has already put money aside (about A$20 million from its cash balance) to pay for its share of a two‑well Bedout drilling campaign using the Transocean Equinox rig from around April 2027.

FPSO Dorado Current Status

Currently, the Dorado FPSO development in the Bedout Basin is not yet approved and remains in a pre‑FID appraisal and concept‑refinement phase. The joint venture’s own guidance indicates drilling will resume in the first half of 2027, with further development work contingent on evaluation of those results, implying that any renewed FID discussion is unlikely before late 2027 at the earliest. 

Stakeholder Details

FPSO Dorado Project Cost

Project Timeline

Conclusion

The FPSO Dorado Project represents Australia’s largest undeveloped oil discovery, with a phased development strategy designed to deliver 249 million barrels of light oil and condensate + 1.1 trillion standard cubic feet of gas resources in the Bedout sub-basin offshore Western Australia. 

After years of delays and repeated deferrals of the FID, the project has regained strategic importance amid regional energy-security concerns and elevated oil prices, positioning it as a potential cornerstone of domestic liquids supply. 

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