Echidna is one of three discoveries made by Karoon in the Santos Basin. Image: Karoon Gas.
BY CAMERON DRUMMOND
OIL explorer Karoon Gas has approved the development concept for its Echidna light oil discovery in Brazil’s Santos Basin and was now ready to advance the Front End Engineering and Design (FEED) phase of the project.
The development concept consists of a leased floatation production, storage and offloading facility; two extended horizontal production wells, and one gas injection well.
The approval was a milestone result of 18 months’ worth of subsurface evaluation that included reservoir modelling, production scenario analysis, well construction feasibility studies and development optimisation.
“The optimisation work has been focused on delivering a capital efficient, risk-weighted development concept for the Echidna oil discovery that is economically robust in the current oil price environment,” Karoon said in a statement.
FEED was expected to take about nine months and cost under $10 million, with completion planned during the 2018 March quarter and a final investment decision targeted for the following quarter.