Karoon Energy – Baúna Production Shut-In and Updated CY24 Guidance

Karoon Energy (ASX: KAR) has announced a production shut-in at the Baúna Project following an incident involving the mooring system on the FPSO Cidade de Itajaí.

Key Details:

  • Shut-In Incident:
    On 11 December 2024 (Brasilia Time), production was safely shut-in due to two anchor chains failing on the FPSO. The FPSO is permanently moored using four sets of four anchor chains, but two chains failed, prompting the shut-in to minimize risk to personnel and the environment.
    • One of the failed chains had previously been repaired in Q3 2021.
    • Despite the failure, the FPSO remains stable and on station.
  • Response and Repairs:
    Karoon, along with FPSO operator Altera&Ocyan, has already mobilized an anchor handling vessel to assist with FPSO positioning if needed. A second vessel and materials for repairs are being sourced and will be sent to the site.
    • Expected Resumption: Production is expected to resume during the week of 23 December 2024 once repairs are completed and regulatory approvals are received.
  • Production Impact:
    Before the shut-in, the Baúna Project had stabilized production at 24,000 bopd following maintenance in Q3 2024. The Baúna reservoirs are performing as expected.

Updated 2024 Production Guidance:

  • Baúna Production (Year-to-Date):
    As of 12 December, 7.2 MMbbl have been produced from the Baúna Project. The shut-in due to anchor chain failure has led to a revision in the 2024 production guidance from 7.5 – 7.7 MMbbl to 7.2 – 7.4 MMbbl.
  • Who Dat Production (Year-to-Date):
    Year-to-date Who Dat production is 2.7 MMboe on a Net Revenue Interest (NRI) basis. 2024 guidance for Who Dat has been updated to 2.9 MMboe, slightly below the previous range of 3.0 – 3.1 MMboe due to an extended maintenance period following Hurricane Rafael.
  • Total Production for CY24:
    As a result of the above adjustments, total production guidance for CY24 is now 10.1 – 10.3 MMboe, reduced from the previous range of 10.5 – 10.8 MMboe.

Next Steps:

  • Karoon will continue to monitor the situation and provide updates as repairs progress and production resumes.