Karoon concludes purchase of FPSO Cidade de Itajai valued at U$ 115 million

(PN) Karoon announced that it has completed the transaction with Altera & Ocyan for the purchase of FPSO Cidade de Itajaí, located in the Baúna field, in the Santos Basin. The total value of the deal was US$115 million, plus approximately US$8 million in transaction costs, with the final payment of US$85 million to be made on April 30, 2025.

The company has signed a transition services agreement with Altera & Ocyan to ensure continuity of operations and a smooth transfer process as Karoon assumes greater operational control of the FPSO.

The oil company is currently conducting a bidding process to hire a new service provider, which will support Karoon as the operator of the FPSO in the future, which is expected to be completed by mid-2025.

Karoon CEO and Managing Director Julian Fowles said that taking ownership of the FPSO Cidade de Itajaí represents a significant milestone in Karoon’s evolution over the past five years, from an explorer to an operator of offshore oil and gas production assets.

“Owning the FPSO gives Karoon direct strategic control over the facility. This will enhance our ability to manage operational performance and reduce long-term operating costs, as well as providing us with greater flexibility to revitalize the facility, thereby extending the life of the field and enhancing the value of the Baúna Project,” he said.