Karoon Energy Places Winning Bid for Six Blocks Offshore Brazil

Baúna FPSO (Credit: Karoon Energy)

Australian oil and gas company Karoon Energy has secured interest in six blocks in the Santos Basin, offshore Brazil, in the ANP fifth Permanent Offer Bid Round for Concession Contracts.

Two of the blocks, S-M-974 and S-M-1038, are located approximately 17 kilometers from the Neon field, and contain the Piracucá discovery.

In addition, Karoon was successful in its bid for four deepwater blocks (S-M-1484, S-M-1605, S-M-1358, S-M-1603), located adjacent to Karoon’s existing deepwater exploration acreage in the Santos basin.

These deepwater blocks are around 80 kilometers southeast of Baúna field. Formal granting of the blocks is expected to occur in the fourth quarter of 2025, subject to meeting certain qualification conditions, the payment of a bid bonus of approximately $14.8 million and providing a financial guarantee for approximately $6.1 million, equivalent to 30% of the minimum work program.

(Credit: Karoon Energy)

“Karoon is pleased with the successful bid for the six blocks in the latest Brazilian permanent offer bid. The newly acquired blocks further strengthen Karoon’s presence in the offshore Santos Basin. Two of the blocks, S-M-974 and S-M-1038, contain the Piracucá discovery.

“Initial technical studies suggest the Piracucá discovery could be an attractive tie-back candidate into a potential Neon FPSO, subject to the proposed Neon development achieving a Final Investment Decision as well as necessary regulatory approvals. The four deepwater blocks (S-M-1484, S-M-1605, S-M-1358, S-M-1603) were acquired in a strategic move to consolidate our position in the area at low entry cost,” said Julian Fowles, Karoon’s CEO and Managing Director.