Karoon Energy Progressing Towards Next Phase of Development in Brazil

Australia’s oil and gas company Karoon Energy is expected to make a crucial decision in April 2025 regarding the next stage of development for an oil field discovery in the Santos Basin off the coast of Brazil.

Following the hiring of a rig in April 2021 for well intervention at the Baúna field, Karoon has been actively engaged in exploration, appraisal, and development activities in the pre-salt Santos Basin. The company has made significant progress, with plans to move into the front-end engineering design (FEED) phase for the Neon project.

Development Activities

The Maersk Developer rig, now known as Noble Developer, completed a successful well intervention campaign at the Baúna field and is set to drill two development wells at the Patola field. Additionally, one or potentially two control wells will be drilled at the Neon oil discovery site.

The Neon project team has made strides in updating reservoir models and conducting studies to optimize the development plan and capex requirements. Karoon is also exploring the redeployment and modification of an FPSO unit to enhance project cost and schedule benefits.

Upcoming Milestones

In April 2025, Karoon will decide whether to progress the Neon project into the FEED phase, which will involve detailed project execution plans, design specifications, procurement planning, and cost estimates. A data room will be opened, and a farm-down process initiated to secure a partner before final investment decisions are made.

The Neon oil field, located northeast of the Baúna field, is a key focus area for Karoon. The company is in negotiations with Altera & Ocyan (A&O) to take possession of the FPSO Cidade de Itajaí, which plays a crucial role in hydrocarbon production in the region.

Global Presence

While Karoon is actively involved in hydrocarbon development in Brazil, the company also has a stake in LLOG’s assets in the U.S. Gulf of Mexico, now known as the Gulf of America. Development studies for two hydrocarbon-bearing wells are ongoing in this region, showcasing Karoon’s diversified portfolio.

With a focus on sustainable development and strategic partnerships, Karoon Energy continues to drive innovation and growth in the oil and gas sector, positioning itself as a key player in global energy markets.