AUS
NZ
UK
CA
USA
IND
Highlights
- Karoon Energy revises 2024 production outlook due to Baúna project disruption
- Baúna and Who Dat sites experience lowered production guidance
- Total output for CY24 adjusted following operational setbacks
Karoon Energy (ASX:KAR) has announced a revision in its 2024 production guidance following an unexpected shut-in at its Baúna oil project in Brazil. The production halt occurred last week due to an anchor chain issue affecting the floating production storage and offloading (FPSO) system at the site.
The company now forecasts a reduced output for the calendar year. Initial guidance of 7.5 million to 7.7 million barrels of oil (MMbbl) from Baúna has been revised to a range between 7.2 million and 7.4 million MMbbl, depending on the timeline for repairs.
The Baúna project faced a setback on December 11 when two of its sixteen anchor chains failed, impacting production capabilities. Karoon Energy (KAR) anticipates that operations will resume during the week of December 23, once the necessary repairs are completed and regulatory approvals are secured.
In addition to Baúna, production challenges have extended to Karoon's Who Dat project, located in the Gulf of Mexico. The company has revised its guidance for Who Dat, with production now expected to reach 2.9 million barrels of oil equivalent (MMboe), down from the earlier target range of 3 to 3.1 MMboe.
Earlier this year, the Who Dat site faced significant operational delays caused by Hurricane Rafael. The storm led to an extension of the site’s scheduled maintenance shutdown period from an anticipated range of 10 to 14 days to 18 days. Additionally, a slower-than-expected ramp-up to full production further affected the site's overall output.
As a result of these disruptions, Karoon Energy (KAR) has reduced its total production guidance for CY24. Initial estimates of 10.5 to 10.8 MMboe have been adjusted to a lower range of 10.1 to 10.3 MMboe.
The recent developments highlight the operational challenges faced by Karoon Energy's key assets, impacting production across two regions. With the Baúna repairs progressing and anticipated to conclude shortly, the company remains focused on resuming operations within the scheduled timeframe.
While Karoon navigates these production headwinds, the adjustments to guidance reflect the importance of addressing unexpected operational hurdles to sustain long-term performance.
