Karoon Energy has reached a final investment decision (FID) to move ahead with the Patola field development in the Santos Basin, Brazil with an investment of $175m-$195m.

Patola is contained in 300m of water depths in the BM-S-40 production licence, near the producing Baúna and Piracaba accumulations. Karoon Energy is 100% owner of BM-S-40.

The field will be tied back to the Cidade de Itajaí floating production, storage, and offloading (FPSO) vessel installed at the Baúna oil field in the same licence.

First oil from the Patola field is targeted to be produced in the first quarter of calendar year 2023. The offshore field is estimated to produce at an initial rate of over 10,000 barrels of oil per day (bopd) from reservoirs of the same geological age as those in the Baúna and Piracaba fields.

The field development involves the drilling of two near vertical subsea production wells. The Maersk Developer rig will be deployed for the drilling and completion of the two wells after it wraps up the ongoing four-well Baúna intervention programme.

Karoon Energy CEO and managing director Julian Fowles, said: “Together with the Baúna intervention program, Patola is expected to add materially to our production base, with total output forecast to reach approximately 30,000 bopd in early 2023, more than double current production rates.

“The Patola development is a nearfield expansion and will utilise existing infrastructure, including the FPSO and facilities at Karoon’s onshore base. Consequently, it is expected to be an efficient and value-accretive investment.”

Karoon Energy has awarded an integrated engineering, procurement, construction and installation (iEPCI) contract to TechnipFMC for the design, manufacture, and installation of subsea infrastructure.

The subsea infrastructure includes Christmas trees, flexible pipes, risers, umbilicals, and others. According to Karoon Energy, the equipment’s delivery and installation is slated to take place in the latter half of next year.

TechnipFMC subsea president Jon Landes said: “We are very pleased to receive our first iEPCI contract in Brazil for the Karoon Patola project. TechnipFMC and Karoon have a relationship based on trust and transparency, with shared principles and values.”