Santos (ASX:STO) announces oil discovery in WA

Energy giant Santos (ASX:STO) says its Pavo-1 exploration well has made a significant oil discovery 46 kilometres east of its Dorado oil field in offshore Western Australia.

Pavo-1, which is 70 per cent owned by Santos and 30 per cent owned by Carnavon Energy, is located about 160 kilometres north-east of Port Hedland.

“The Pavo-1 success is expected to support a potential low-cost tie-back to the first phase of the proposed Dorado development, with Pavo north having an estimated breakeven cost of less than US$10 per barrel, and future gas production from the Bedout basin providing a source of supply into our existing domestic gas infrastructure in Western Australia,” said chief executive officer Kevin Gallagher.

“With the global oil and gas markets seeing increased volatility, low-CO2 oil and gas resources at Dorado and Pavo add significantly to Australia’s national energy security.”

Shares in Santos (ASX:STO) are trading 0.3 per cent higher at $7.81.