en.Wedoany.com Reported - Australia's largest undeveloped oil project, Dorado, may reach a final investment decision by 2027, as the energy crisis triggered by the Iran war highlights the need for domestic resources.

Junior exploration company Carnarvon Energy Ltd holds a 10% interest in the Dorado oil discovery offshore Western Australia. Its CEO, Philip Huizenga, said in an interview with Bloomberg that the project's final investment decision could be made by the end of 2027. Australian energy giant Santos, as the operator, holds an 80% majority stake, while Taiwan's CPC Corporation holds the remaining 10%.

Discovered in 2018, Dorado is estimated to contain 344 million barrels of oil equivalent in 2C contingent resources. Huizenga noted that the discovery has once again become a core development consideration for Santos, representing an oil project at a time when Australia needs energy security. Santos has not yet announced a final investment decision, but at its investor briefing day last week, it stated that the Bedout Basin, which includes the Dorado discovery, will undergo a scale assessment through three wells in 2027 to test the integrated oil and gas potential of the northern basin.

Santos said Dorado is Australia's largest undeveloped oil project, characterized by high returns and a short payback period, while also enhancing energy security. The initial development phase will use a floating production, storage, and offloading (FPSO) vessel to produce oil and condensate, while the second phase will involve natural gas production to backfill Santos' domestic gas infrastructure in Western Australia.

Although Australia is a major producer of natural gas and liquefied natural gas, it relies heavily on imports for most of its transportation fuel. Fuel supply conditions have further deteriorated after a fire at one of the country's only two refineries. Since 2013, Australia has permanently closed five of its seven refineries, increasing dependence on imported fuel. The Iran war and fuel shortages in Asia have led Australia to take extraordinary measures, including halving the excise tax on gasoline and diesel for three months and securing diesel and gasoline supplies from countries such as Brunei, South Korea, and China.

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