Karoon boosts Brazilian field’s oil output with all wells now online

July 17, 2026, by Melisa Cavcic

Karoon Energy, an ASX-listed international oil and gas exploration and production company, has brought back on stream another well at an oil field off the coast of Brazil.

FPSO Cidade de Itajaí; Source: Altera Infrastructure

Karoon has confirmed the restart of production from the PRA-2 well at the Baúna field, following the completion of a well intervention activity to reconnect the umbilical and re-establish connectivity to the electrical submersible pump. The FPSO Cidade de Itajai is working at the field.

While the well’s umbilical unexpectedly disconnected in October 2025 from the FPSO, the PRA-2 well came back online on July 6, 2026. The well is currently producing at 1,000 -1,200 barrels of oil per day (bopd).

As a result, the total Baúna project’s production is approximately 22,000 bopd, including the contribution of approximately 8,600 bopd from SPS-92. The operator has emphasized that all production wells associated with the project are now in service.

Carri Lockhart, Karoon’s CEO and MD, commented: “Over the first half of 2026, we committed to restoring production and strengthening the performance and reliability of the Baúna assets. We have delivered those commitments safely and on schedule.

“With Baúna’s major capital work programs now complete, Karoon is entering a phase of optimising performance and maximising value from those investments. Pleasingly, since the FPSO revitalisation campaign, the Baúna FPSO has been performing at the high end of the targeted 90-95% operating efficiency range.”

The Brazilian player claims that this marks a further step towards higher production, lower capital expenditure, and stronger second-half cash flow generation, subject to oil prices and operating performance remaining in line with expectations.

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Lockhart underlined: “As we head into the second half of 2026, our low-cost base, attractive operating break-even and production profile position the company to generate high cash flow margins, further strengthening our balance sheet and supporting disciplined capital allocation and long-term shareholder value creation.”