Karoon takes step towards Santos development

Karoon Gas Australia is moving towards the development and production phase of its Santos basin assets off the coast of Brazil, which include the Echidna and Kangaroo oil discoveries.

The Australian company revealed Tuesday it had submitted the final discovery evaluation report for Santos Blocks S-M-1037, S-M-1101, S-M-1102, S-M-1165 and S-M-1166, along with a declaration of commerciality.

The submission of the documents to Brazilian regulator ANP mark the end of the exploration phase for the blocks and, upon approval, will see Karoon enter the development and production phase.

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

Karoon noted the documents outlined two distinct areas for retention, subject to ANP approval, which include the Echidna and Kangaroo oil accumulations along with some near field prospective resource opportunities.

The company has previously estimated Echidna and Kangaroo to hold a combined gross contingent resource of 129 million barrels of light 39 degrees API crude.

It expects the final discovery evaluation report to be approved within 60 days of submission and it plans to submit a development plan within 180 days of the declaration of commerciality.

Karoon said it would also assess a final investment decision independently of the approvals and stated it expected to be in a position to decide on FID later in t....

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