Oil companies in Brazil and around the world are looking forward to having a hand in the supply of the
newly discovered oil in Echidna, Brazil. This not only comes as good news for oil and gas companies, but
it is also good news for the consumers as oil and gas prices are expected to drop.

Technology has played a major role in the discovery of the oil and will still be a significant part of the
retrieval, processing, storage and distribution process. Gas prices have been on a steady rise both in
Brazil and around the world, a problem that the Echidna oil discovery is hoping to solve at least.

 

What else does FEED approval mean?

It is without a doubt that Echidna oil discovery present gas business opportunities but at the same time
it is putting both the environment and lives at risk through pollution and destruction. This is a great
challenge to the players in oil business although new technologies to curb these risks have been
developed and we are looking forward to seeing why this particular oil discovery is different from the
rest.

In the past three years, the oil business industry has been suffering, and several oil suppliers have shut
down due to the high cost of maintaining oil vessels yet no oil to trade. With the new mine yet to be
exploited, oil and gas business in Brazil and around the world are about to make a fair come back.
With 28,000 barrels of oil expected per day from the two wells, job opportunities are presenting
themselves, and Brazil expected to benefit the most. However, Karoon is ready to welcome tender
requests from all over the world from oil companies that will be interested in supplying their oil and gas.

 

The real business

Like any big business, partners come in handy. Karoon has fully expressed their interest to partner with a
German oil and gas company; Dea. Karoon is giving Dea an opportunity to buy 50% of the project, a
move that will improve the economic relationship between Brazil and German.
To add on that the 50-50 partnership will see Karoon buy more oil production in Brazil. However, the
agreement is yet to be agreed upon and approved by both in due time.

With the oil and gas industry all over the world looking forward to Karoon’s discovery, it is suspected
that more rich oil deposits still exist in Brazil and it is no doubt that Brazil is standing in a chance to be
one of the biggest oil suppliers in the globe.

Oil extraction at Echidna is scheduled for next year as the company is still working on logistics and
equipment since the youngest oil field requires the latest in oil and gas technology. The discovery is a
significant accomplishment for Karoon after failing to come to terms with another oil company a few
months ago. With such progress and dedication, Karoon is yet to be one of the worlds biggest players in
oil business.