Karoon Gas Australia has launched a request for tender to select suppliers for its operated Echidna development located offshore Brazil.
Karoon has a 100% equity interest in Blocks S-M-1037, S-M-1101, S-M-1102, S-M-1165 and S-M-1166 in the Santos Basin located approximately 200 kilometers off the coast in the State of Sáo Paulo, Brazil.
Karoon’s drilling campaigns in the Santos Basin Blocks resulted in the Kangaroo and Bilby light oil discoveries in 2013 which were followed by the Echidna light oil discovery on Block S-M-1102 in 2015.
In an update on Wednesday, January 31, 2018, Karoon said that the Front End Engineering and Design (FEED) work for the Echidna development continued during the fourth quarter of 2017. The FEED phase started in July 2017 .
The development concept consists of a leased floating production, storage and offloading (FPSO) facility, two extended horizontal production wells and one gas injection well. The design concept would see infrastructure in place capable of producing at a peak rate of 28,000 barrels per day, with each well producing at a peak rate of 14,000 bpd.
The FEED phase is expected to take about nine months and cost less than A$10 million, with completion planned during the March quarter 2018. The final investment decision (FID) is targeted for the June quarter of 2018.
Karoon also said on Wednesday that the request for tender was issued to select suppliers for the Echidna development and that it remains Karoon’s intention to contract an engineering, procurement, construction, and installation work package.
Karoon expects to receive tenders that substantially reduce upfront capital commitments. The tenders are expected to include deferred payment structures, equipment financing solutions, subsurface risk reward sharing and/or equity ownership.
In addition, Karoon remains committed to farming down its 100% equity interest in these Blocks prior to making the FID.
Offshore Energy Today Staff