Karoon Completes Well Intervention at BAÚNA FIELD and Announces Production Growth

July 8 (PN) Karoon Energy recorded an increase in production at the Baúna field, in the Santos Basin, following the completion of an intervention on well SPS-92, which resumed operations after the replacement of its electric submersible pump (ESP). The well’s output reached 8,600 barrels of oil equivalent per day (boe/d), raising the field’s total production to approximately 20,500 boe/d, prior to natural well decline.

Karoon also estimates an additional increase of between 1,000 and 2,000 boe/d once well PRA-2 returns to operation. According to the company, work to reconnect the subsea umbilical is already underway. Well SPS-92 had experienced a partial failure of its electric submersible pump in August 2025, reducing its output to around 4,500 boe/d.

“In line with our 2026 commitment, we have strengthened and secured Baúna operations on schedule. The completion of the FPSO and flotel revitalization campaign, combined with the resumption of production from SPS-92 and exceptional health, safety, and environment (HSE) performance, marks the transition from a period of high investment to a phase where we expect strong cash generation,” stated Karoon CEO Carri Lockhart. “We enter the second half of 2026 with significantly higher production and a more robust operational platform. Although the cost of the intervention on SPS-92 exceeded our initial estimate, it restored a high-margin well with a low break-even cost. With Brent prices between US$60 and US$70 per barrel, FPSO operational efficiency between 90% and 95%, and annual operating cost savings of US$30 million to US$40 million following the FPSO transition, we expect Baúna to generate strong operating cash flow,” he added.

The company explained that it carried out a preventive rig-based intervention on the well, restoring production from SPS-92 and recovering that high-profitability production stream.

Final operation costs were higher than expected due to weather-related shutdowns, the presence of debris in the well, and equipment-related downtime during the work. According to Karoon, these factors did not jeopardize the resumption of production but led to an upward revision of the capital expenditure (capex) forecast for the Baúna field.