Carnarvon sells Dorado stake

Carnarvon Energy has agreed to sell a 10 per cent stake in the Dorado gas field and neighbouring fields in a deal worth up to $US146 million ($A102 million).

The buyer is Taiwan’s national oil and gas company, CPC Corporation.

It will make an upfront payment of $US46 million and cover $US90 million of project expenditure once a final investment decision is taken on Dorado.

The project, off Western Australia’s northern coast, is majority owned and operated by Santos, which announced last week that it had obtained approval from regulatory body NOPSEMA.

Santos is planning a two-stage development, starting with liquids production followed by potential gas production.

The estimated cost is $2.2 billion.

West Perth-based Carnarvon Energy will retain a 10 per cent stake in Dorado.

It said the partial divestment, together with prospective debt finance and its existing cash reserves, would fund its share of the development.

The CPC transaction includes the neighbouring Pavo field, where Carnarvon’s stake has been cut from 30 per cent to 20 per cent.

Santos plans to undertake further appraisal drilling at Pavo as it assesses a potential tie-in to the Dorado development.

Managing director Adrian Cook said CPC’s purchase demonstrated the world-class nature of the Dorado development and the great Bedout sub-basin.

Azure Capital was Carnarvon’s financial adviser on the transaction and its ongoing debt financing process.

CPC’s assets include minority stakes in the Prelude and Ichthys gas projects.