Oil and gas explorer Karoon Energy Ltd. said on June 3 it had taken a final investment decision to develop the Patola project in the Santos Basin offshore southern Brazil.
The project is expected to cost between $175 million and $195 million to develop, which Karoon said it plans to fund through a syndicated facility agreement and cash. Production of more than 10,000 barrels of oil per day is initially anticipated, the company said, adding first production is slated for the first quarter of 2023.
“The decision on the Patola Project now brings our capital expenditure commitments in Brazil to nearly $1 billion,” Chairman Bruce Phillips said in a release.
The project is located near the company’s Baúna oil field, which it bought from Brazilian energy giant Petrobras in July 2020 for $665 million.
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