Australian headquartered and ASX-listed Karoon Energy Ltd. reveals that its wholly-owned Brazilian subsidiary, Karoon Petróleo & Gás Ltda., has completed the acquisition of the Baúna floating production, storage and offloading vessel (FPSO), the Cidade de Itajaí, from Altera & Ocyan (A&O).
The total price for the FPSO was US$115m plus approximately US$8m in transaction costs, with the final payment of US$85m made on April 30 Brasilia Time (BRT), as the company states.
Karoon says that a transition services agreement has been signed with A&O in order to ensure continuity of operations, and a smooth handover process as Karoon assumes greater operational control of the FPSO.
The tender process for a new service provider(s), who will support Karoon as operator of the FPSO into the future, is progressing as planned and is expected to be concluded in mid-2025.
Karoon’s CEO and managing director, Dr Julian Fowles, states: “Taking ownership of the Cidade de Itajaí FPSO marks a significant milestone in Karoon’s evolution over the past five years from an explorer to an operator of offshore oil and gas production assets.
“Owning the FPSO gives Karoon direct strategic control over the facility. This will enhance our ability to manage operational performance and reduce long-term operating costs, as well as provide us with greater flexibility to revitalise the facility, thereby potentially extending field life and increasing the value of the Baúna Project.”
