Australia’s Karoon Energy Completes Acquisition of FPSO Vessel in Brazil

Australia’s oil and gas company Karoon Energy has closed the acquisition of a floating production, storage, and offloading (FPSO) vessel, which is working on its project off the coast of Brazil.

After successful negotiations with Altera & Ocyan, Karoon Energy finalized the acquisition of the FPSO Cidade de Itajaí, currently operating at its Baúna project in BM-S-40 off the coast of Brazil. The acquisition deal, valued at $115 million plus transaction costs, was completed at the end of April 2025.

Karoon’s subsidiary, Karoon Petróleo & Gás, has acquired the FPSO, with the final payment of $85 million made on April 30, 2025. Additionally, the company has entered into a transition services agreement with A&O to ensure a smooth operational handover process.

Dr Julian Fowles, Karoon’s CEO and Managing Director, stated: “Taking ownership of the Cidade de Itajaí FPSO marks a significant milestone in Karoon’s evolution, allowing us strategic control over the facility to enhance operational performance and reduce long-term operating costs.”

The FPSO Cidade de Itajaí, capable of operating in water depths of up to 1,000 meters, was constructed in 1995 and converted in 2012. Since its deployment in Brazil in 2013, the FPSO has been producing 80,000 barrels of oil per day and compressing 2 million cubic meters of gas daily.

The acquisition of the FPSO signifies Karoon Energy’s transition from an explorer to an operator of offshore oil and gas production assets, providing the company with greater control and flexibility to optimize the Baúna project’s field life and value.