A 46-year-old male remains under police guard at Nepean Hospital in Penrith following the death of an elderly male and female at Oberon.
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About 7.15am on Friday morning, police attached to the Chifley Police District were alerted to an incident on On-Avon Avenue, following concerns for the welfare of the occupants.
Officers attended and found the bodies of a man and a woman with stab wounds, with both yet to be formally identified.
A crime scene was established and an investigation into the circumstances surrounding the deaths commenced.
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Further inquiries were made between police and a 46-year-old male, which led to the latter being arrested by Nepean police officers at Jack William Drive in Penrith at 8.50am.
All three parties are believed to be related to each other.
Chifley Police District Acting Superintendent Bruce Grassick said the scene was particularly distressing for officers.
"As you can imagine, it's quite tragic circumstances," he said.
"One towards the rear of the house and one in the kitchen area. It's quite confronting for our police and we're working with their welfare."
It is believed that the 46-year-old male was living in Sydney before the incident, while it's also believed that the deceased had only moved to Oberon recently, having lived in Sydney as recently as 2019.
"We're still working through the timeframe that they've been in the area," Supt Grassick said.
"We understand they were once residents of Sydney in the last couple of years, so we're trying to work out the timeline since they were here."
Supt Grassick said the 46-year-old had been treated at the scene of his arrest by NSW Ambulance paramedics due to an injury to a hand and is likely to undergo surgery.
"To that particular male, he has some injuries to a hand and he's currently at Nepean Hospital under police guard and will likely undergo some sort of surgery," he explained.
Talks between the 46-year-old man and police are continuing.
No charges have yet been laid by police.
Anyone with information that may assist is urged to contact Crime Stoppers on 1800 333 000.
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