Karoon Announces Investment of up to US$65 Million for the Revitalization of FPSO Cidade de Itajai

Aug. 28 (PN) Karoon announced to the market that it intends to invest between US$55 million and US$65 million in 2026 in a revitalization campaign for the FPSO Cidade de Itajaí, used in the Baúna field in the Santos Basin. Additionally, the company estimates spending approximately US$80 million to US$90 million between 2030 and 2034, in 2025 values, on activities to extend the field’s useful life.

The investment package includes two flotilla campaigns and the modernization of associated equipment. Concurrently, the company revised its projected abandonment costs for the field, which now include the complete decommissioning of the FPSO. With changes in the scope, duration of activities, and vessel rates, the values ​​increased from US$174.9 million in 2032 to US$260 million in 2039.

Another development announced by the oil company was the review of Baúna’s proven and probable reserves (2P). Following the production performance in the first half of 2025, reserves increased by 13.7 million barrels, reflecting the acquisition of the FPSO, the plan to extend the unit’s operational life, and the better-than-expected reservoir performance. As a result, 2P reserves reached 52.7 million barrels on June 30, 2025, a 35% increase compared to December 31, 2024.

According to Karoon, the analysis confirmed that, with the new cost structure and ongoing extension plans, the economic life of the Baúna project has been extended by seven years, until 2039, when the production concession expires. “A comprehensive analysis has been completed, confirming that, with the new cost structure and the implementation of the extension plans, the economic life of the Baúna project can be extended from 2032 to 2039, when the concession expires.

Furthermore, over the past 18 months, the field’s decline rate has been lower than anticipated, indicating a higher-than-expected recoverable volume,” stated Julian Fowles, CEO of Karoon. “Consequently, 2P reserves as of June 30, 2025, were revised to 52.7 million barrels, 35% above the December 2024 level. With most of the 2C contingent resources transferred to reserves, 3 million barrels remained in this category in June 2025, compared to 11.2 million in December 2024, considering extended production until 2040, the end of the assessed operational life of the unit,” Fowles added.