Karoon Energy, an ASX-listed oil and gas exploration and production company, has confirmed a slight increase in operating efficiency at its floating production, storage and offloading (FPSO) unit deployed in an oil field off the coast of Brazil.
the next Activation and maintenance campaignthe FPSO Cidade de Itajaywhich works on Paona fieldOperating efficiency reached 97.2%, above the target range of 90-95%, in Q2 2026, compared to 96.1% in Q1 2026. This campaign restored production of approximately 10,000 barrels of oil equivalent per day in the wake of the crisis. SBS-92 and PRA-2 well activities.
Caron produced 1.08 million barrels of oil equivalent in the second quarter of 2026, at an average rate of 9,202 barrels of oil per day, compared to 17,350 barrels of oil per day in the first quarter of 2026, and generated sales revenue of $116.4 million, driven by significantly higher realized oil prices. Pana’s total production in the Santos Basin currently stands at approximately 22,000 barrels of oil per day.
The operator confirms that the quarter-on-quarter production variance reflects the planned 28-day maintenance shutdown and temporary shutdown of SPS -92, one of the field’s major production wells, for intervention work to replace the electric submersible pump. The FPSO Cidade de Itajaí has a liquids processing capacity of approximately 80,000 barrels per day and a storage capacity of approximately 631,000 barrels of oil.
The company confirms that two shipments were lifted during the period, totaling 0.98 million barrels, with the shipments being delivered to refineries in Europe and Asia. The average realized price for cargoes sold was $94.56 per barrel, 33% higher than the average realized price in the previous quarter, reflecting the increase in global oil prices.
The company explains that several milestones were accomplished during this quarter, the most notable of which are: Transfer control to the FPSO operator The FPSO planned a full 28-day shutdown for facility maintenance, inspections and modernization, including hull inspection and production head replacement, which was completed in May 2026, while a fleet-supported FPSO activation campaign was implemented. It’s finished In June 2026.
After production is restored at SPS-92, it follows Good intervention To replace the electric submersible pump (ESP), the PRA-2 well was also recommissioned, following an umbilical reconnection and ESP reconnection process, allowing all production wells associated with the Baúna project to be in service.
Carrie LockhartCEO and Managing Director of Caron commented: “At the beginning of 2026, we embarked on a clear and ambitious program to strengthen Caron’s operations in Pawna. In the second quarter, we delivered on these commitments.
“We transitioned the FPSO operation, completed the largest maintenance and activation program in the company’s history, restored production from the SPS -92 and PRA-2 wells, and created a stronger operating platform for increased operational efficiencies, structurally lower operating costs and stronger cash generation moving forward.”
Caron has completed the acquisition of 100% of the BM-S-40 concession, which includes the Pawna and… Piracaba Producing oil fields and Batula The resource, known collectively as the Pauna Project, was discovered by Petrobras in November 2020. The acquisition price was US$380 million plus contingent considerations of up to US$285 million and accrued interest, dependent on future realized oil prices over the period 2022-2026.
The project consists of 12 subsea wells, including two Patola wells purchased online in 2023. Pawna crude is a high-quality oil with an API between 33 and 38 degrees and is low in impurities. The oil extracted from the field is sold under marketing arrangements with Shell Western Supply and Trading, a subsidiary of Shell.
Lockhart confirmed: “With the Baúna work program largely completed, we expect strong free cash flow in the second half of 2026, assuming oil prices average $60-$70 per barrel and operating performance remains in line with guidance.”
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