Karoon Energy has advised that the suspension of Baúna production, including from the Patola field, is expected to be extended into May 2023. Karoon and the FPSO operator, Altera&Ocyan, have committed to undertake both essential and proactive works, focussed on the ongoing detailed inspection of production systems on the FPSO, Cidade de Itajaí, which is expected to be completed shortly. These activities include the acceleration of some of the planned July shutdown work scope, to ensure the future reliability of the FPSO.
The timing of when production will restart is dependent on completion of the inspections and the final scope of works undertaken. Based on a resumption of safe and reliable production operations in early May, FY23 production is expected to be at the low end of the current guidance range (7.5 – 9.0 MMbbl). The impact on FY23 unit production costs is still being assessed, but these are likely to be towards the upper end of the current guidance range (US$13-17/bbl(1)).
Karoon will provide a further update on the timing of the restart of production and FY23 production and unit production cost guidance in the Quarterly Report to 31 March 2023, scheduled to be released on 27 April 2023.
(1) Unit production costs based on daily operating costs associated with Baúna production, excluding government royalties.
Source: Karoon Energy
