Karoon acquires Bauna oil field offshore Brazil

Karoon Energy Ltd., Melbourne, has signed an agreement to acquire a 100% operating interest in Bauna field in concession BM-S-40 in the Santos basin offshore Brazil for $665 million.

The concession has two producing reservoirs—Bauna and Piracaba—both of which are tied back to the leased Cidade de Itajai floating production, storage, and offloading vessel. Another undeveloped discovery called Patola is nearby.

Karoon said the reservoirs are currently producing 20,000 b/d of light, sweet crude before planned development workovers.

Robert Hosking, Karoon managing director, said the acquisition also is expected to deliver material operational and logistical synergies for the potential development of the company’s existing wholly owned southern Santos basin assets, Neon and Gola.

“The company has been working hard for 3 years to acquire a high-quality production asset with robust economic returns,” Hosking said.

The purchase price will be offset by operating cash flows from the effective sale date of Jan. 1, 2019.

The transaction is subject to final Brazilian regulatory approval, which is expected during first-half 2020.