Karoon Energy, an ASX-listed international oil and gas exploration and production company, has achieved a significant rise in oil production at an oil field offshore Brazil, thanks to well intervention activities, resulting in higher costs than initially expected.
Caron confirmed the resumption of production SBS-92 Well in Beansafter the well intervention process for Replacement electric submersible pump (ESP), with the well now producing at a rate of 8,600 barrels of oil equivalent per day, bringing the project’s total production to about 20,500 barrels of oil per day, before a natural decline.
The company expects a further increase in production by 1,000 to 2,000 barrels of oil per day once this is completed. Overland-2 The well has been brought back online, and cord reconnection operations are now underway. The SPS-92 experienced a partial ESP failure August 2025Which reduced the daily production rate to about 4,500 barrels per day.
Carrie LockhartCEO and Managing Director of Caron commented: “In line with our stated commitment of 2026, Karoon has strengthened and protected Baúna’s operations on time. The successful completion of the FPSO fleet activation campaign and restoration of production from SPS-92, with exceptionally strong HSE performance, marks our transition from a period of high investment to a period of expected strong cash flow generation.”
“We enter the second half of 2026 with materially higher production and a stronger operating platform. While the SPS-92 intervention cost exceeded our original estimates, it has recovered high and low break-even production margins well. At a Brent price of US$60-70 per barrel, a targeted FPSO production efficiency of 90-95% and annual operating cost savings of US$30-40 million following the FPSO transition, we expect Baúna to generate operational Strong cash flow.”
The operator proactively performed a well intervention on the rig that brought SPS-92 back into production and restored high margin production flow. Final intervention costs were higher than originally anticipated, reflecting weather-related downtime, well debris, and non-productive equipment-related time encountered during implementation.
According to Caron, these factors did not affect the return of production. However, capital expenditure guidance at Baúna has increased due to higher SPS-92 intervention costs.
while Who dat Capex estimates decreased after the update project estimates and contingencies, neon The engineering and commercial costs required for this have increased slightly Project progress On to the next decision gate, the beginning of Front-End Engineering and Design (FEED).
With the pound Activate FPSO The major well intervention campaign is now largely complete, and Caron expects a significant decline in sustainable capital requirements at Paona over the next few years, with only modest ongoing investment expected, excluding new growth projects.
Lockhart confirmed: “The capital we have invested this year enhances the long-term value of Baúna and strengthens our confidence in maintaining parity with low operating costs and cash generation capacity. Our focus remains on outstanding HSE performance, restoring PRA-2 and maintaining FPSO production efficiency within the 90-95% target range, which we recently exceeded.”
“In addition, we continue to improve operating model excellence and realize additional operating cost savings associated with the completed operating transition and across the enterprise.”
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