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Karoon still set on Brazil deals

Written by  Friday, 15 September 2017 10:42

Karoon Gas says it still intends to move forward with the proposed divestment deal with Petrobras for the Bauna and Tartaruga assets, and the development of Echidna.

Map of Santos basin, from Karoon.

The Australian company clarified its strategy in Brazil that the sales process by Petrobras of its Bauna and Tartaruga assets remains subject to court proceedings. Karoon said the company has been notified that the process was withdrawn and that it was Petrobras' intention to re-launch the process.

The two companies first entered negotiations for Bauna and Tartaruga in October 2016, but have faced several setbacks from the Brazilian court.

“We understand that this will not occur until after the court proceedings are finalized. It remains Karoon's intention to participate in the Bauna and Tartaruga processes when the sales process re-opens, based on the merits of the assets and subject to Karoon's position when the assets are re-tendered for sale,” Karoon said. “In the meantime, Karoon has entered alternative sales processes with a focus on bringing high quality assets to the business in the short term.”

Karoon is currently reviewing opportunities that include production assets and government sanctioned exploration opportunities in the southern Santos and Campos Basins.

The company has also entered the front-end engineering and design (FEED) on its Echidna light oil discovery in the Santos Basin.

“This process is expected to continue into 2018 and, subject to a successful final divestment decision (FID), will provide a firm timeline for development and first oil,” Karoon said.

The Echidna development concept consists of two production wells, with each well expected to be able to flow at rates of up to 14,000 b/d. The production well estimates are the result of extensive subsurface modelling using data from 3D seismic and exploration drilling, production scenario analysis and well construction feasibility studies.

Read more:

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Petrobras, Karoon deal remains suspended

Injunction order disrupts Karoon, Petrobras deal

Karoon to buy Petrobras stake in two fields

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