Australian operator Santos is facing big challenges as it works to negotiate the contractual arrangements for the proposed Dorado floating production, storage and offloading vessel in Australia.

The FPSO is the major production facility in the multi-billion dollar Dorado project, which also includes an offshore wellhead platform and subsea production equipment.

Santos selected a provisional FPSO contractor last August — the UK-headquartered Altera Infrastructure — but the two parties have so far been unable to agree on the terms and conditions for proceeding into the engineering, procurement, construction and installation phase, according to multiple FPSO market sources.