Karoon still courting farm-in partner to expedite FID for its Neon oil field

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Australian oil and gas company Karoon is still courting a farm-in partner for its 100% owned Neon oil field in the Santos Basin, offshore Brazil, as it considers FPSO options and the possibility of drilling another well to de-risk the prospect.

The company has carried the blocks containing two oil fields, Neon and Goia, to a development and production phase but also extended a final investment decision initially targeted for last year to 2019.

Last week Karoon said the development plan was due for submission to Brazil’s national oil and gas regulator ANP during the third quarter of this year

The company said the development plan did not represent a final investment decision as it strives to find a farm-in strategic partner to achieve this objective.

Karoon said it was currently weighing up the costs of drilling a new well with the twin objectives of testing the southern part of the field to reduce the range of uncertainty in the current contingent resources estimates and to assist with planning and design development.

The company’s development plan envisages two horizontal wells, one gas injection well and a leased FPSO with future potential tie-in options encompassing the Neon field up-dip fault block, Neon Maastrichtian oil pool, Goia oil field, and the Emu up-dip prospect.

“Following adoption of the SDP concept, Karoon went through an extensive tender process with service and equipment providers seeking to contract an integrated field development solution comprising wells, subsea infrastructure, and an FPSO. These negotiations continued through 2018 and remain ongoing today,” Karoon said.

“In line with previous advice, Karoon remains committed to farming down equity in Neon prior to reaching FID on the development. Coincident with the foregoing work, a renewed farmout process for Neon and Goia is underway, with updated detailed geotechnical material recently being made available to interested parties.”

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