Pacific Rubiales to join Karoon on Santos basin blocks

Pacific Rubiales Energy Corp., Toronto, will acquire from Karoon Gas Australia Ltd. a 35% net working interest in four exploratory blocks in the Santos basin offshore Brazil and an option on a fifth exploratory block. The blocks are in 300-400 m of water 220 km off Santa Catarina state.

Pacific Rubiales will pay $40 million for interests in the S-M-1101, S-M-1102, S-M-1037, and S-M-1165 blocks and the option on S-M-1166 and will fund up to $210 million in carried costs of three wells to be drilled in 2013, subject to ANP approval.

Pacific Rubiales will carry as much as $70 million of well costs for each of the Kangaroo and Cassowary/Emu exploratory wells and will fund 35% of all costs thereafter. It may elect to participate in Bilby, the third well of the three-well commitment program. If it exercises the option, it must carry up to the first $70 million in costs for the Bilby well and contribute 35% of all costs thereafter.

Karoon will remain operator of the blocks until the completion of the three-well program, and then Pacific Rubiales will be entitled to request the operatorship subject to meeting all regulatory and other legal requirements to ANP’s satisfaction.

Pacific Rubiales has identified several multilevel postsalt and two presalt prospects on the blocks. All prospects contain direct hydrocarbon indicators from seismic data. Management estimation of the midrange recoverable resource reached 1.8 billion bbl of oil equivalent excluding the presalt prospects.

The blocks lie along trend with Piracuca and Caravela oil fields and Merluza gas field. Petrobras-Repsol declared the BM-S-7 Piracuca light oil field commercial in April 2009. Repsol reported that Piracuca, 5 km northeast of the Karoon acreage, has 550 million boe in place. Late Santonian reservoirs produced 3,476 b/d of oil and liquids with 4.4 MMcfd of gas on preliminary tests.

Petrobras is considering an aggregate FPSO development for Piracuca and nearby fields. PanAtlantic Energy Group recently disclosed that its Sabia-1X wildcat drilled on Block BM-S-72 just west of the Karoon blocks has penetrated multiple hydrocarbon bearing zones of interest, providing additional indications of the area’s prospectivity (OGJ Online, Sept. 13, 2012).

Related Articles

Tullow Oil provides production update on Jubilee, other fields

07/01/2015 Tullow Oil PLC reported that gross production for the Jubilee field offshore Ghana averaged 105,000 b/d in this year’s first half, up from 102,000 ...

OGJ Newsletter


Security through change


At the start of this month the US Army published its "Energy Security & Sustainability (ES2) Strategy" report. 

Mubadala starts production at Nong Yao in Gulf of Thailand

06/29/2015 Mubadala Petroleum, Abu Dhabi, started production on June 17 from its Nong Yao oil field in the G11/48 concession of the southern Gulf of Thailand.

Junex provides update on Galt oil property drilling

06/26/2015 Junex Inc., Quebec City, Que., said it is finalizing construction of the surface drilling pad for the Junex Galt No. 5 horizontal well that the com...

Lundin spuds three wells offshore Norway

06/24/2015 Lundin Norway AS, a wholly owned subsidiary of Lundin Petroleum AB, spudded three wells: its second Alta appraisal well in the Barents Sea, an appr...

WPX Energy adds to acreage in Gallup oil play

06/22/2015 WPX Energy Inc., Tulsa, has added to its San Juan Gallup acreage in New Mexico with the purchase of another 14,300 net acres from an undisclosed se...

YPFB Andina makes oil discovery in Bolivia’s Boqueron field

06/22/2015 YPFB Andina reported an oil discovery in Boqueron field in Bolivia’s Santa Cruz region. The Boqueron 4D well reached a total depth of 3,237 m and h...

Watching Government: Considering energy R&D

06/22/2015 Moving from research to development (R&D) became a recurring question as the US Senate Energy and Natural Resources Committee considered 43 sep...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected