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Highlights
- Karoon Energy secures six new blocks offshore Brazil
- Capital expenditure revised upwards for 2025
- Strategic move strengthens Santos Basin portfolio
Karoon Energy (ASX:KAR) has announced a major development in its expansion strategy by successfully bidding for six offshore exploration blocks in Brazil's prolific Santos Basin. This acquisition is a significant milestone in the company’s growth plans, reinforcing its presence in one of the region's most promising oil and gas territories.
The company revealed that the formal granting of these blocks is expected in the fourth quarter of 2025. This will be subject to a bid bonus payment of US$14.8 million (approximately A$22.8 million) and a financial guarantee of around US$6.1 million, which equates to 30% of the minimum work program commitment. These financial commitments highlight Karoon’s proactive investment strategy and long-term vision in offshore Brazil.
In light of the successful bid, Karoon has revised its capital expenditure guidance for 2025. The updated forecast now ranges between US$120 million and US$140 million, up from the earlier estimate of US$105 million to US$125 million. The revision reflects the incorporation of bid-related expenses and additional exploration commitments tied to the new blocks.
The offshore Santos Basin is a key area of interest for global energy players, and Brazil’s continuous bidding model — managed by the ANP, the national petroleum, natural gas, and biofuels agency — allows companies to express interest in exploration blocks on an ongoing basis. Winning bids are typically awarded based on the size of the signature bonus and the scope of the work program pledged.
Karoon’s management expressed optimism about this move, with CEO Julian Fowles highlighting the strategic value of the acquisition. According to him, these newly awarded blocks significantly strengthen the company's footprint in the Santos Basin, aligning with Karoon’s broader exploration and development objectives.
Karoon Energy is part of the ASX200 stocks, a key benchmark for Australian investors. This inclusion can offer broader visibility and institutional interest, particularly as the company deepens its operational footprint in Brazil’s oil sector.
This latest update underscores Karoon Energy’s momentum and resource commitment, as it positions itself for future production opportunities and potential reserve additions in one of South America’s most dynamic offshore basins.
