Karoon Energy Launches Revitalization Project for Brazil Fields
August 29, 2025
Australian oil and gas company Karoon Energy has initiated the multi-million dollar revitalization and life extension scheme as part of the Baúna project, comprising Baúna, Piracaba and Patola fields, offshore Brazil.
Karoon has reassessed the Reserves and Contingent Resources for the Baúna project, following the completion of the acquisition of the Baúna floating production, storage and offloading (FPSO) unit , the Cidade de Itajaí in April 2025 and lower production decline rates than anticipated over 2024 and 2025 to date.
The Baúna Project comprises the Baúna, Piracaba and Patola fields in Concession BM-S-40 offshore Brazil.
According to Karoon, 2P Reserves have been revised upwards by 17.6 MMbbl. After production of 3.9 MMbbl for the first half of 2025, 2P Reserves as at June 30, 2025 were 52.7 MMbbl, compared to 39.0 MMbbl at the end of December 2024.
The company expects to invest $55-65 million in an FPSO revitalisation campaign in 2026, and approximately $80 – 90 million for life extension activities between 2030 and 2034.
The life extension CAPEX is expected to include two flotel campaigns and associated equipment upgrades. In conjunction with expert third parties, abandonment costs, including the full demobilization of the FPSO, have been reviewed.
Due to the inclusion of the FPSO, as well as changes in scope, activity durations and vessel rates, abandonment costs have increased from $174.9 million in 2032, to $260 million in 2039, the company reported.
“One of the key drivers underpinning the 1H25 Baúna FPSO acquisition was the potential to reduce future operating costs, which would allow us to access some or all of the existing Contingent Resources.
“A comprehensive analysis has now been completed, which has confirmed that, with our expected new cost structure and implementation of life extension plans, the economic life of the Baúna Project can be extended by approximately seven years, from 2032 to 2039, when the Production Concession expires.
“In addition, over the past 18 months, the Baúna decline rate has been lower than our expectations, indicating a higher Ultimate Recovery from the project,” said Julian Fowles, Karoon’s CEO and Managing Director.
