Karoon Gas Australia Ltd., Melbourne, has moved into the development phase of its Kangaroo and Echidna oil fields in the Santos basin offshore Brazil following approval from Brazilian government regulator ANP for the fields’ final discovery evaluation report along with a declaration of commerciality (DOC).
Earlier this month Karoon submitted the documents, which outlined two distinct areas for retention surrounding the two fields along with some near-field prospects and leads.
The convention in Brazil, on DOC, is to give field names to those parts of a field or development program that are on different blocks and to name those fields after marine organisms. Consequently, as each field straddles two blocks, Echidna will become Neon and Neon Sul while Kangaroo will now be known as Goia and Goia Sul.
Karoon said the ANP approvals mark the end of the exploration phase and the commencement of the development and production phase of the project. This does not, however, constitute a final investment decision.
Karoon added that a FID will be assessed independently of the approvals and the company expects to be positioned to decide on FID later this year.
Both fields contain light oil and proved good reservoir deliverability.
Early this month, Karoon released revised contingency resource estimates for Neon and Neon Sul of 30 million bbl (1C), 55 million bbl (2C), and 92 million bbl (3C). For Goia and Goia Sul, it released revised resource estimates of 16 million bbl (1C), 27 million bbl (2C), and 46 million bbl (3C).
The base concept development plan includes two optimally located long horizontal production wells aimed at accessing a large portion of Neon and Neon Sul’s reserves. The wells are expected to produce as much as 28,000 b/d and the field is tentatively scheduled to be brought on stream in 2020.
The field, in permit S-M-1102, lies 112 km off Santa Catarina in 400 m of water. It was found in March 2015.
Nearby Goia and Goia Sul field, discovered in 2013 in permit S-M-1165, is being considered as a future add-on tied into the Neon and Neon Sul project.
Karoon has 100% interest in the project and is operator.