Karoon Energy's wholly owned Brazilian subsidiary, Karoon Petróleo & Gás, has completed the acquisition of the Cidade de Itajaí floating production, storage and offloading vessel (FPSO), operating at Baúna field, offshore Brazil.
The FPSO was acquired from Altera & Ocyan (A&O), with the total consideration for the FPSO amounting to $115 million plus approximately $8 million in transaction costs. The final payment of $85 million was made on April 30, 2025.
A Transition Services Agreement has also been signed with A&O, to ensure continuity of operations and a smooth handover process as Karoon assumes greater operational control of the 80,000 bopd 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, the Australian oil and gas firm noted.
“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 revitalize the facility, thereby potentially extending field life and increasing the value of the Baúna project,” said Julian Fowles, Karoon’s CEO and Managing Director.