By David Winning
SYDNEY--One of the largest new oil developments in Australia is effectively on hold after majority owner Santos decided not to begin preliminary engineering work or advance a deal to buy a vessel to pump and store crude on site.
Carnarvon Energy outlined the status of the Dorado oil project in Western Australia to investors on Tuesday after being informed by Santos of its decision. Santos owns 80% of the venture, with Carnarvon and a unit of China's CPC Corp. each owning 10%.
Carnarvon said Santos, which is Dorado's operator, had decided not to purchase a floating production storage and offloading vessel, or FPSO, that was an option for the first phase of the Dorado project. Santos also won't begin front end engineering and design work at this stage.
Santos didn't immediately respond to a request for comment.
"Given the quality of the Dorado project, we at Carnarvon are disappointed by this latest deferral to the project," Chief Executive Philip Huizenga said.
Carnarvon said the venture now won't make a decision on whether to construct the project this year as had been originally planned.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
01-20-25 1830ET
