Karoon Ups Production in Bauna Project in Brazil

Karoon Ups Production in Bauna Project in Brazil
The average production for the quarter was 21,655 barrels of oil per day (bopd).
Image by curraheeshutter via iStock

Karoon Energy Limited’s project in Brazil reported a sequential increase in production, while its project in the Gulf of Mexico posted a dip in output.

Production at the Baúna Project (BM-S-40) in the third quarter was 1.99 million barrels (MMbbl), 44 percent higher than the previous quarter, during which there was a three-week planned annual shutdown.

The efficiency of the floating production, storage, and offloading unit (FPSO) was 82.9 percent, compared to 78.3 percent in the previous quarter, excluding the planned maintenance shutdown. The average production for the quarter was 21,655 barrels of oil per day (bopd).

According to Karoon’s latest quarterly production update, production in July was impacted by works on the gas compressors and main production header, which were completed in August. The production rate at the end of the quarter was approximately 24,500 bopd.

Karoon reported that three cargoes were lifted during the period, totalling 1.40 MMbbl, with the cargoes sold to refineries in North America and Europe. A fourth cargo of 0.5 million barrels was offloaded and in transit to the port of Santos, Brazil, at the end of the quarter, and held as inventory.

At the Who Dat assets in the Gulf of Mexico, in which Karoon holds a 30 percent interest, gross production for the quarter was 30,543 barrels of oil equivalent per day (boepd), 12 percent lower than the previous quarter figure of 34,678 boepd.

Karoon said that production was impacted over the quarter by two precautionary shut-ins and down-manning of personnel from the Who Dat floating production system (FPS) due to hurricanes Francine and Helene. In addition, planned gas compression maintenance on the FPS took place during the quarter.

Karoon added that it is monitoring legal and political developments affecting the U.S. Gulf of Mexico, including a recent federal court ruling in Maryland that has set aside the biological opinion of the National Marine Fisheries Service that underpins all oil and gas activity in the area, which has been widely appealed. At this stage, Karoon said it “does not anticipate any material impact on Who Dat operations”.

Based on production to date, Karoon has narrowed its production guidance to 10.5 to 10.8 million barrels of oil equivalent (MMboe). Baúna project production is expected to be towards the lower end of the prior range, while production from Who Dat is also expected to be at the lower end of previous guidance, primarily due to recent hurricane activity in the Gulf of Mexico.

Karoon CEO and Managing Director Julian Fowles said, “The Who Dat South well commenced drilling in September. Progress has also been impacted by the recent hurricanes. Despite these weather disruptions, the drilling activity is progressing and the well is expected to reach total depth by late October. Meanwhile, analysis of the data gathered during the successful drilling of the Who Dat East appraisal/exploration well continued and an update of resource estimates is expected to be completed in the fourth quarter. While yet to be finalized, these studies support our positive view on the potential of Who Dat East and the greater Who Dat area”.

“The decision on whether the Neon Foundation Project will enter FEED [front end engineering design] is on track for [the first quarter of 2025]. During the quarter, the project team continued exploring opportunities to enhance and de-risk project economics over the range of possible subsurface outcomes,” Fowles said.

According to the company’s website, the Neon oil field is located 37.3 miles (60 kilometers) northeast of Baúna. It was discovered in 2015 by the Echidna-1 exploration well, which was part of Karoon’s appraisal and exploration drilling campaign. The exploration well encountered 100 metres of oil-bearing reservoir and on test, flowed 4,650 bopd of high quality, 39 deg API oil.

“Substantial analysis, engineering and technical work has subsequently taken place on the potential development of the Neon resource, aimed at establishing how to maximize recovery rates and assessing the commercial potential of the discovery,” Karoon noted.

To contact the author, email rocky.teodoro@rigzone.com



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