Karoon announced it will invest between US$55 million and US$65 million in 2026 for a revitalization campaign of the FPSO Cidade de Itajaí, which operates in the Baúna field in the Santos Basin. The company also estimates spending approximately US$80 million to US$90 million between 2030 and 2034, in 2025 values, on activities aimed at extending the field’s useful life.
The planned investment includes two flotilla campaigns and modernization of associated equipment.
At the same time, Karoon revised projected abandonment costs for Baúna, now incorporating the complete decommissioning of the FPSO. With changes in scope, duration, and vessel rates, projected abandonment costs increased from US$174.9 million in 2032 to US$260 million in 2039.
The company also reported an upward revision of Baúna’s proven and probable reserves (2P). Based on production performance in the first half of 2025, reserves increased by 13.7 million barrels, reflecting the FPSO acquisition, plans to extend operational life, and stronger-than-expected reservoir performance. As of June 30, 2025, 2P reserves stood at 52.7 million barrels, a 35% rise compared with December 31, 2024.
“A comprehensive analysis has been completed, confirming that, with the new cost structure and the implementation of the extension plans, the economic life of the Baúna project can be extended from 2032 to 2039, when the concession expires,” the company said.
CEO Julian Fowles added: “Over the past 18 months, the field’s decline rate has been lower than anticipated, indicating a higher-than-expected recoverable volume. Consequently, 2P reserves as of June 30, 2025, were revised to 52.7 million barrels, 35% above the December 2024 level. With most of the 2C contingent resources transferred to reserves, 3 million barrels remained in this category in June 2025, compared to 11.2 million in December 2024, considering extended production until 2040, the end of the assessed operational life of the unit.”
Karoon Energy Ltd. is an independent oil and gas exploration and production company incorporated in Australia and listed on the Australian Securities Exchange (ASX). Its activities are primarily focused on offshore projects in Brazil and exploration assets in other regions.
FPSO Cidade de Itajaí is a floating production, storage, and offloading vessel operating in Brazilian waters. It was originally commissioned for the Baúna and Piracaba fields in the Santos Basin and is subject to long-term charter and operational contracts with oil companies.