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Karoon Energy, the Australian-based global energy company, aims to add between 15.000 and 20.000 barrels of oil by early 2023
The executive chairman of Karoon Energy said today, this Monday (20/09) that the company sees strong growth prospects in Brazil, where it started producing oil last year, working to more than double oil production by 2023 and considering two options for developing another field by mid-decade. Check out this news: Karoon intends to invest US$ 195 million in Campo de Patola, located in block BM-S-40, in the Santos Basin
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Karoon projects an increase in oil production
Karoon produced an average of just over 13.000 barrels of oil per day in the eight months to June 30 after it purchased the Bauna oil field from Petrobras for $665 million and reported oil sales revenue of $170,8 million and a small net profit. “The result reflects a major transformation for Karoon over the course of the year,” said Chief Executive Julian Fowles, who took the reins 10 months ago and appointed a new CFO and head to manage operations in Brazil.
Karoon aims to add between 15.000 and 20.000 bpd by early 2023, increasing production from existing wells in Bauna and connecting in the Patola field, a project expected to cost around US$185 million.
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Development in the oil fields
Karoon is looking to develop the Neon field, either building a 50km to 60km subsea pipeline to link it to the Bauna Floating Production Storage and Offloading (FPSO) vessel or installing an FPSO on top of the Neon field. Fowles said linking Neon to the Bauna FPSO is looking increasingly attractive as it will save on capital costs and operating costs and can help extend the lifetime of the Bauna field by spreading fixed costs across the two fields.
If the company proceeded with development of the Neon, first production would be around 2025 or 2026, Fowles said. Karoon is working on a strategy to help reduce emissions from its operations and seek offsets, which it plans to outline in October as it seeks to attract more environmentally conscious lenders and investors.
Read also Karoon signs contract with Maersk to carry out intervention in four oil wells in the Santos Basin
Maersk Drilling, an offshore drilling contractor, signed a contract with Karoon Energy to carry out the intervention in four oil wells in the Baúna field, located in the Santos Basin. Maersk said the contract is expected to start in the first half of 2022 and will be valid for 110 days.
The total value of the contract is approximately US$34 million, including the costs of modifying and mobilizing the platform. The contract includes the option to increase the drilling time by up to 150 days, to carry out interventions in the Patola and Neon oil fields, also located in the Santos Basin.
In November last year, Karoon signed a contract with Petrobras for the purchase of the Baúna field, located in the Santos Basin, for US$ 285 million, which can be paid until 2026. According to the state-owned company, Karoon paid US$ $150 million to complete the transaction, in addition to the $49,9 million paid in July 2019 when the sale agreement was signed. The remaining installments, estimated at around US$40 million, will be paid by Karoon over 18 months. Both parties agreed that Petrobras would receive the contingent part of the price before 2026, in the amount of US$ 285 million. The state-owned company added that, with this transaction, Karoon will become the operator of the concession with a 100% stake.
