Karoon plans $345m investment to become oil producer in Brazil

Australia’s Karoon plans to accelerate efforts to evaluate its discoveries in the Santos Basin from next year and start a new stage of investments, of $345 million over the next three years, which promises to turn the company, focused today on exploration, into an oil producer. The company has recently brought to its team José Formigli, the former director of exploration and production of Petrobras, who will work as an oil consultant in the development of the early production project of field Echidna, which is expected to produce 20,000 barrels of light crude oil from 2019. Karoon plans also to sell part of its stake in the project to finance the investments. "Our intention is to keep a share of 40% to 45% in the projects," said Tim Hosking, Karoon managing director for South America, in an interview with Valor.

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