FPSO Cidade de Itajai is operating on the Baúna field - Karoon

Karoon restructures exec team as it creates Brazil unit

Following the acquisition of the Baúna field in Brazil, Australia’s Karoon Energy has created a Brazil Business Unit and is working to restructure its executive team with immediate effect.

FPSO Cidade de Itajai is operating on the Baúna field; Source: Karoon

Karoon said on Monday it has created the Brazil Business Unit, which will be reporting directly to the CEO and Managing Director, supported by the appropriate technical, financial, and growth expertise in the Melbourne corporate centre.

Karoon explained that its transition from explorer to oil producer following the acquisition of the Baúna asset in Brazil and the creation of the Brazil Business Unit calls for a transformation in the experience and capabilities within the organisation, as well as a clear definition of accountabilities in a streamlined reporting structure.

To remind, Karoon completed the acquisition of a 100 per cent operating interest in the Baúna field, located in the Santos Basin, in early November 2020.

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As a result, there will be several changes affecting the company’s long‐standing staff.

A new and expanded position of Executive Vice President and President Karoon Brazil, reporting directly to the CEO and Managing Director, has been created.

As a result of this, the current position of South America General Manager, currently held by Tim Hosking, will be absorbed into the new position with Hosking departing the business at the end of March. A global executive search has been initiated to fill the new role.

Hosking’s responsibilities will transition to Chief Operating Officer, Edward Munks, on an interim basis, ensuring continuity of Brazil management.

Karoon’s current CFO, Scott Hosking, will step down from his role in H2 CY2021. An executive search has been initiated for a new CFO appointment.

Furthermore, James Wootton steps down from his current role as Head of Investor Relations at the end of March.

Ann Diamant, previously the Senior Vice President (SVP) for Investor Relations at Oil Search, joins Karoon as a consultant in the new role of SVP Communications and Investor Relations from early April.

According to the company, these changes will enable a continued production from Baúna and the delivery of the near term Baúna intervention program and the Patola development, expected to reach FID in Q2 CY2021.

Karoon CEO and Managing Director, Julian Fowles, commented: “Karoon has successfully made the transition from explorer to producer. It is now time to commence our plans to enable Karoon’s near term growth in the core basins of SE Brazil and to formulate our longer-term strategy.

“To do this, we need to enhance and deepen the oil & gas executive capability within the organisation and implement rigorous corporate and operational processes, with clarity on corporate and individual KPIs, executive accountabilities and authorities.

Fowles added: “Karoon Brazil becomes a full capability Business Unit, responsible for executing all in‐country business, with full accountability for the delivery of safe, reliable and profitable production within parameters set by the executive team. Expectations associated with governance and assurance have been increased commensurate with Karoon’s new status as a production company.

“Executive performance will be measured against timely delivery of key HSSE, production, operational and financial performance indicators, with remuneration more closely tied to performance”.