Page 16 - LatAmOil Week 03 2023

LatAmOil NEWS IN BRIEF LatAmOil

Karoon issues drilling

schedule update for Patola

field offshore Brazil

The Noble Developer drilling rig has finished
drilling and completion activities on the Patola
field.
Installation of wellheads and Christmas trees
on the two Patola development wells was final-
ized in early January 2023 and work is expected
to commence shortly on installing the remaining
subsea infrastructure, flowlines, umbilicals and
other pipework required to connect the wells
to the Cidade de Itajaí FPSO. Commissioning
of the new facilities and first production from
Patola is targeted to commence by the end of the
first quarter of CY2023.
The drilling rig is now being mobilised to the
BAN-1 well location, where an intervention to
re-open a lower zone in the well that had pre- exploration company with assets offshore the This changes to one year with a $90 per barrel
viously been in production will take place. This Falkland Islands, has provided an update on its oil price. The project economics are positively
is the fourth and final intervention, which was activities in the Falkland Islands. impacted by the high-quality reservoir with
deferred in order to accelerate the Patola devel- The Company has designed a phased devel- favourable fluid properties that does not require
opment drilling. opment concept for its large gas condensate a large number of development wells, the appli-
Karoon expects that there will be no mate- discovery (Darwin), located to the south of the cation of a conventional FPSO development
rial impact on the final Baúna intervention cost Falkland Islands and had it validated in a new and the attractive fiscal terms set by the Falkland
estimate, as previously provided to the market. independent engineering study by an inter- Islands Government.
After the BAN-1 intervention is complete, national engineering consultancy. The objec- Following the initial exploitation phase, pro-
and subject to the receipt of regulatory approv- tives were threefold: to generate a production ject expansion could occur from free cash flow
als, it is planned that the drilling rig will then profile that would require relatively low initial by drilling further production wells on Darwin
move to the Neon field to drill the first of poten- capital expenditure; to deliver accelerated pay- East and the full development of Darwin West.
tially two Neon control wells. Karoon is actively back; and to allow expansion of the production Several options have been identified that could,
engaging with regulatory authorities to obtain profile from free cash flow. We believe this has subject to certain assumptions, elevate produc-
the necessary Neon approvals in a timely man- been achieved, and in this regard, an updated tion towards 70,000 bpd.
ner, in order to minimise potential standby time. investor presentation will be uploaded to the The Company believes that this new phased
Dr. Julian Fowles, CEO and Managing Direc- Company’s website giving further details of this development concept with accelerated payback,
tor of Karoon, said: “The Patola development is development concept. The material points are presents an attractive opportunity for industry
progressing well, with the drilling and comple- highlighted below. collaborators and will help attract the necessary
tion phase of the project executed without any The preliminary development would focus funding to advance this exciting project.
major safety or environmental incidents. Patola on Darwin East. Assuming appraisal well flow Borders & Southern Petroleum, 17 January
remains on track to commence production dur- rates meet reservoir modelling expectations, 2023
ing the first quarter of CY2023. The receipt of then initial production of 26,000 bpd could be
final environmental approvals for the Neon drill- achieved from two production wells and one gas MODEC’s Anita Garibaldi
ing has been impacted by the recent change of injector well. The recently commissioned inde-
federal administration in Brazil. Consequently, pendent facilities engineering report validated FPSO arrives in Brazil for
we shall undertake the final planned interven- the development concept, confirming that a con-
tion in the Baúna field, on BAN-1, prior to mov- ventional FPSO development concept could be final commissioning
ing to Neon.” utilised, typical of global deep water petroleum
Karoon Energy, 16 January 2023 field developments. The proposed subsea com- The FPSO Anita Garibaldi MV33, our newest
ponents and topsides processing technologies platform, arrived in Brazil, where its final com-
Borders & Southern would all be standard industry technology. The missioning will proceed in a shipyard in the state
report also provided up to date cost estimates, of Espírito Santo. Chartered to Petrobras, the
Petroleum provides per the below. vessel will be installed at Marlim field, Campos
Assuming the FPSO is leased, the capital Basin, and will be capable of processing 80,000
update on its activities requirement, excluding contingency, for the barrels per day (bpd) of crude oil and 7mn cubic
drilling, subsea, and project costs is estimated to metres per day of gas.
in the Falkland Islands be approximately $640mn. Based on Manage- start operating the FPSO Almirante Barroso
In addition to the MV33, MODEC will also
ment’s scoping study economic modelling, pay-
AIM-listed Borders & Southern Petroleum, back could be achieved within two years of first MV32 in 2023, the first chartered FPSO to be
the London based independent oil and gas production (assuming $60 per barrel oil price). installed at the Búzios field.

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