DORADO DEVELOPMENT - Surface Wellheads and XMTs

Please refer to the SOW for further details pertaining to this package.

The Dorado oil field is located in the Bedout basin, approximately 150km north of Port Hedland in Petroleum permit WA-437-P. The project will be developed jointly in line with the equity split of Santos 80% and Carnarvon Petroleum 20%.

The offshore resource is expected to be developed with up to 16 platform wells drilled by a jack-up drilling rig. These would be connected back to an adjacent Floating Production, Storage and Offloading facility (FPSO) moored in 95 metres of water above the Dorado field.

The proposed FPSO unit will have processing facilities to stabilise and store the oil and compress and re-inject gas to the reservoir.

Santos anticipates that the development will have an estimated 10-15 years oil life. A Front End Engineering Design (FEED) decision is targeted for 2021, followed by a Final Investment Decision (FID) in 2022 and production Ready For Start Up (RFSU) some 4 years later.Targets are subject to all necessary joint venture approvals, regulatory approvals and/or appropriate commercial arrangements.

The Dorado contracting strategy has been developed around four main work elements:

• Drilling & Completions (D&C);
• Supply and Installation of Offshore Hardware, including a Well Head Platform, Umbilicals, Risers & Flowlines;
• Engineering, Procurement, Construction & Commissioning of a Floating Production Storage and Offloading facility (FPSO); and
  
• Logistics.

The procurement approach for these major scopes, including FEED, will be through a competitive tendering process with a mix of Engineer Procure Construct / Install (EPC/I), purchase or leasing as appropriate. The majority of procurement activity will take place post-FID. Under each of these work elements, where applicable, successful Tier 1 contractor(s) will assume responsibilities as the 'Procurement Entity' acting on behalf of Santos as the 'Project Proponent'.

For all itemised packages that result in a sub-contract to the Procurement Entity, each Procurement Entity will be required to conduct their procurement activities in line with the actions outlined in this plan, providing full, fair and reasonable opportunity for Australian entities to participate where capable and competitive