MT MARTHA, Australia – Brazil’s national petroleum agency (ANP) has accepted Karoon Gas Australia’s declaration of commerciality for the Echidna and Kangaroo light oil discoveries in the Santos basin.
The project can now enter the development and production phase, although Karoon stressed this does not constitute a final investment decision.
As part of the process, the company relinquished block S-M-1166 and retained two distinct areas encompassing the two discoveries and some near-field prospects.
It has also renamed the two fields: as each accumulation straddles two blocks, Echidna is now known as Neon and Neo Sul and Kangaroo as Goiá and Goiá Sul.
Karoon has been working on a development plan which it expects to submit to the ANP during the December quarter. It remains in discussions with interested parties on joint evaluation of all opportunities in the southern Santos basin.
Following the award of block S-M-1537 fromBid Round 14 last September, the company has conducted geological and geophysical studies of the block, which contains one main prospect.
The reservoir comprises Oligocene turbidite sands which will likely have very high porosity and permeability, as is the case in the producing Baúna and Piracaba fields.