Karoon Energy snags six blocks
Karoon Energy, the Australian independent already active in the Santos Basin, submitted a clinching bid for 100% interests in six blocks in the basin. Of these, S-M-974 and S-M-1038, roughly 17 km from the company’s Neon Field, contain the Piracucá discovery.
In addition, the company was offered four deepwater blocks (S-M-1484, S-M-1605, S-M-1358 and S-M-1603), close to its existing deepwater exploration acreage in the basin and 80 km southeast of its Baúna Field.
Formal confirmation of the awards should follow during the fourth quarter, subject to qualification conditions, payment of a bid bonus of about $14.8 million and providing a financial guarantee for about $6.1 million, equivalent to 30% of the minimum work program.
Karoon CEO and managing director Dr. Julian Fowles said initial technical studies of Piracucá indicate a potentially commercial tieback option to a potential FPSO based over Neon FPSO, subject to the Neon development proposal attaining FID and regulatory approvals.
The company viewed the other four deepwater blocks as a strategic move to consolidate its position in the area at a relatively low entry cost.
