Global oil and gas explorer Karoon Energy (ASX:KAR)
has given the go-ahead to the company’s Patola subsea tie-in project development.
The project, estimated at $175 million to $195 million, involves the construction of a subsea tie-in structure connected to the floating production, storage and offloading vessel Cidade de Itajaí.
Karoon Energy stated, “Today’s Patola FID is a major milestone in our journey to becoming a substantial oil producer. The decision to proceed with this development is testament to the hard work and strong collaboration between our teams in Brazil and Australia”.
The Patola field is situated in the Santos Basin, off the coast of Brazil. The 100 per cent-owned site is located within a five kilometre radius from the Bauna oil field.
The company has contracted two developers to oversee two main areas of the construction mission.
Maersk Drilling is set to begin building two near vertical subsea production wells at the approximately 280-metre depth, after its four-well operation in Bauna.
Meanwhile, TechnipFMC has been recruited to provide design, manufacturing and installation services for subsea equipment to be utilised in the subsea structure.
The prospective facility is expected to contribute to the estimated production of 14.7 million barrels of oil, as a result of pumping Patola gas into the Baúna reservoir.
The planned infractructure is tipped to be operational by early 2023 and achieve initial flow rates of over 10,000 barrels per day.
Shares in Karoon Energy are trading 4.9 per cent higher at $1.34