Karoon Gas has stepped into the development and production phase for the Echidna and Kangaroo light oil fields off Brazil, as a direct result of approval from the country’s regulator for the fields’ Declaration of Commerciality.
The Kangaroo and Echidna discoveries are located in the Santos Basin for which Karoon has received ANP approval of the Final Discovery Evaluation Report (RFAD) for wholly owned Santos Blocks S-M-1037, S-M-1101, S-M-1102, S-M-1165 and S-M-1166 along with a Declaration of Commerciality (DoC).
Karoon said on it had submitted the RFAD and DoC documents in early May to ANP, the Brazilian oil and gas regulator, outlining two distinct areas identified for retention which include the Echidna and Kangaroo oil accumulations, in addition to near field prospective resource opportunities.
RFAD and DoC approval from ANP signals the end of the exploratory phase and the start of the development and production phase. Karoon said, however, that while approval marks the start of the development and production phase, this does not constitute a final investment decision (FID).
FID will be assessed by Karoon independently of approvals and the company said it expects to be a in position to decide on FID later on this year.
Karoon said it expects to submit a development plan within 180 days of the DoC and the first phase of the development proposes two extended horizontal production wells and one gas injection well,with potential to include Kangaroo as a second phase option.
