Carnarvon’s $218m Taiwan sale approved

The Australian Foreign Investment Review Board has given developer Carnarvon Energy the all clear to sell a portion of its Dorado field project to Taiwan's national oil and gas enterprise.

Carnarvon emerged from a trading halt on Thursday morning confirming it had been approved to sell 10 per cent of its stake of its Bedout permits, located off Western Australia’s northern coast, to a subsisidary of CPC Corporation.

It marks the last major hurdle in getting the deal over the line, with managing director Adrian Cook confirming the transaction would be finalised before the end of August. 

"Following completion, Carnarvon will hold substantial cash and financial liquidity, enabling it to de-risk funding for the Dorado development in conjunction with prospective debt financing, which has received a strong level of market interest so far," he said. 

CPC Corporation agreed to buy half of Carnarvon's 20 per cent stake in the Dorado gas field back in February this year, in a deal worth about $218 million. 

Oil major Santos holds the remaining 80 per cent and is the operator of the project which has been previously estimated to cost around $US2 billion for stage one.

Carnarvon signed the deal with a subsidiary of CPC about six months after Santos deferred a final investment decision on the project for the foreseeable future.

An initial $US56 million (approximately $A80 million) will be paid upfront, with the remaining US$90 million (approximately A$129 million) to be paid once a final investment decision on the broader Dorado project has been made.

Proceeds will go towards funding Carnarvon’s remaining share of the project.

Carnarvon Energy shares last changed hands at 14 cents.