Karoon Gas Australia approved the development concept for the Echidna light oil discovery, progressing the project to the next phase in the development, front-end engineering and design (FEED).
This development milestone is a result of 18 months of subsurface evaluation including reservoir modelling, production scenario analysis, well construction feasibility studies and development optimisation. The optimisation work has been focused on delivering a capital efficient, risk-weighted development concept for the Echidna oil discovery that is economically robust in the current oil price environment.
The Echidna development concept consists of: A leased floating production, storage, and offloading facility; 2 extended horizontal production wells and 1 gas injection well; Expected peak production is approximately 28,000 bbl/day (14,000 bbl/day per well).
FEED is expected to take approximately 9 months and cost less than A$10 million, with completion planned during the March quarter 2018. A final investment decision (‘FID’) is targeted for the June quarter 2018.
During the FEED process Karoon will issue a ‘Request for Tenders’ to select suppliers with the intention of contracting an engineering procurement construction and installation (EPCI) work package for the Echidna development.