ANP Approves Neon (Echidna) and Goia (Kangaroo) Declaration of Commerciality
Friday 25 May 2018
Karoon announced that it has received approval from the ANP for the Neon (Echidna) and Goia (Kangaroo) Declaration of Commerciality.
In relation to the Kangaroo and Echidna discoveries, Santos Basin Brazil, Karoon has received ANP approval of the Final Discovery Evaluation Report (RFAD) for wholly owned Santos Blocks S-M-1037, S-M-1101, S-M-1102, S-M-1165 and S-M-1166 along with a Declaration of Commerciality (DoC).
Karoon Gas Australia Ltd submitted the RFAD and DoC documents in early May to the Brazilian oil and gas regulator, Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP). The documents outline two distinct areas identified for retention which include the Echidna and Kangaroo oil accumulations along with some near field prospective resource opportunities.
As is the convention in Brazil, on Declaration of Commerciality, field names are given to those parts of a field that are in different blocks and are named after marine organisms. As each field straddles two blocks, Kangaroo will officially become GOIÁ and GOIÁ SUL and Echidna will become NEON and NEON SUL.
The RFAD and DoC approval from the ANP mark the end of the Exploratory Phase and the commencement of the Development and Production Phase. While approval marks the start of the Development and Production Phase, this does not constitute a final investment decision (‘FID’).
A FID will be assessed by Karoon independently of these approvals and Karoon is expected to be a in position to decide on FID later in 2018.