Karoon Advances Brazilian Project

Australia-listed Karoon Gas is preparing to enter the development and production phase for its wholly-owned Santos blocks offshore Brazil, the company said April 4.

The company said it submitted the Final Discovery Evaluation Report (RFAD) along with a Declaration of Commerciality (DoC) relating to the Echidna and Kangaroo light oil accumulations to the Brazilian upstream regulator ANP.  While the document submissions to the ANP mark the end of the exploratory phase and if approved the start of the development and production phase, they do not constitute a final investment decision (FID), Karoon said.

Approval of the RFAD is expected within 60 days and will submit a development plan within 180 days of the DoC, it said. Karoon is expecting to be in a position to decide on FID later in the year.

“Submitted proposals are expected to share risk and provide funding flexibility with possible deferred payment structures, equipment financing solutions, subsurface risk sharing, and/or ownership. Karoon remains committed to farming down equity in the 100% owned Santos Basin block prior to FID,” it said.

Karoon managing director Robert Hosking said: “While the declaration of commerciality is largely procedural in nature, this is an important step in moving close to making a final investment decision”.