Karoon Energy Ltd (ASX:KAR) Updates on Baúna Production
Production Incident
Karoon Energy Ltd (ASX:KAR) has confirmed the shut-in of production from the Baúna Project as of 11 December 2024. This decision was taken due to an incident involving the mooring system on the FPSO, Cidade de Itajaí, which saw the failure of two anchor chains. The FPSO remains stable, and production was halted following standard safety procedures to protect personnel and the environment.
Repair Operations and Future Outlook
An anchor handling vessel has been mobilised and is currently on-site to assist with potential repositioning of the FPSO. Efforts are underway to source additional vessels and materials to facilitate the repair of the damaged anchor chains. Karoon expects to resume production during the week of 23 December 2024, pending repair completion and regulatory approvals. Daily production prior to the shut-in had stabilised at approximately 24,000 barrels of oil per day (bopd).
Production Guidance Update
Due to this incident, Karoon has revised its production guidance for the Baúna Project for calendar year 2024 to between 7.2 and 7.4 million barrels (MMbbl), down from the previous estimate of 7.5 to 7.7 MMbbl. Karoon’s year-to-date production figures indicate 7.2 MMbbl up to 12 December. Overall production expectations for calendar year 2024 have also been adjusted to 10.1 to 10.3 million barrels of oil equivalent (MMboe), slightly below initial estimates of 10.5 to 10.8 MMboe.
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