Karoon Energy (ASX: KAR) has announced the successful restart of production at the Baúna Project, exceeding pre-shutdown levels. The SPS-88 well intervention was completed ahead of schedule, with the well resuming production on March 28 BRT. Initial flow rates align with expectations, currently producing approximately 2,000 bopd. Overall Baúna Project output has ramped up to approximately 26,500 bopd following the annual scheduled maintenance that concluded on March 27 BRT.
The company anticipates a natural decline of approximately 15% per annum following an initial period of flush production. An extended maintenance campaign, utilizing a flotel (floating hotel), has been underway to reduce the FPSO maintenance backlog and improve equipment reliability. This campaign leveraged the annual planned maintenance shutdown, with an additional 71,000 hours of work completed. Further backlog maintenance is planned throughout 2025 and into 2026, potentially involving another flotel campaign.
Karoon’s acquisition of the Baúna FPSO is progressing as planned, with the transaction on track to close by the end of April. The selection of a new operations and maintenance (O&M) contractor for the Baúna FPSO is targeted for completion by mid-year. Production guidance remains unchanged for now, with updates expected after Karoon assumes FPSO ownership, finalizes the new O&M contractor, and completes planning for the next maintenance phase. Updated 2025 cost guidance will also be provided once the O&M contractor terms are finalized.
Karoon CEO Dr. Julian Fowles highlighted the company’s focus on improving the reliability and uptime of the Baúna FPSO. He noted that FPSO efficiency prior to the annual maintenance shutdown was above 95%, reflecting the extensive work completed in late 2024. The ongoing maintenance efforts aim to achieve a long-term FPSO efficiency target of 90-95%, which is expected to positively impact production outcomes. Karoon’s share price may reflect the news positively, as efficient production and the completion of planned maintenance generally reassure investors.
