Production Restarts Sooner Than Expected at SPS-88
Karoon Energy (ASX: KAR) has delivered an operational win, successfully completing the SPS-88 well intervention ahead of schedule, with production resuming on March 28 (BRT). The well is already producing approximately 2,000 barrels of oil per day (bopd) on a restricted choke, with flow rates expected to increase as it is gradually opened further.
Meanwhile, the Baúna Project—shut down for scheduled maintenance on March 7—restarted production on March 27, ramping up to 26,500 bopd, exceeding pre-shutdown levels thanks to the resumption of SPS-88.
Strengthening FPSO Reliability
A key focus for Karoon has been improving the reliability of the Cidade de Itajaí FPSO (Floating Production Storage and Offloading unit). The flotel (floating hotel), which has been housing extra workers for an extensive maintenance campaign, will remain on-site until April 6. This initiative has significantly reduced the FPSO’s maintenance backlog, enhancing long-term operational stability.
CEO Dr. Julian Fowles highlighted the progress, noting that FPSO efficiency hit over 95% in early 2025, prior to the scheduled shutdown. With 71,000 additional work hours completed during the flotel campaign, the company is well on its way toward its 90-95% efficiency target, which will support stronger production outcomes.
FPSO Acquisition and Future Outlook
Karoon’s acquisition of the Baúna FPSO is proceeding on track, with the transaction expected to close by the end of April. The company aims to select a new operations and maintenance (O&M) contractor by mid-year, a key step in optimizing costs and performance.
While production guidance remains unchanged for now, Karoon plans to update cost and production forecasts once the FPSO acquisition and new O&M contract are finalized.
“The work completed in this campaign, along with further initiatives once Karoon assumes full control of the FPSO, should enable us to establish reliable and consistent production. Higher efficiency will translate into improved production outcomes,” Dr. Fowles said.
Looking Ahead
Karoon remains committed to safe, reliable, and responsible energy production. The company’s proactive maintenance strategy, along with its FPSO acquisition, positions it well for long-term operational stability and improved production efficiency at Baúna.
