Karoon Energy, an ASX-listed international oil and gas exploration and production company, has made headlines by resuming operations on another well at an oil field off the coast of Brazil.
In a strategic move, Karoon has confirmed the restart of production from the PRA-2 well at the Baúna field. This comes after a well intervention activity that was aimed at reconnecting the umbilical and re-establishing connectivity to the electrical submersible pump. The Floating Production Storage and Offloading unit (FPSO) Cidade de Itajai is pivotal in facilitating operations at the field.
The PRA-2 well experienced an unforeseen disconnection of its umbilical from the FPSO back in October 2025. It was a period of uncertainty, but on July 6, 2026, the well came back online with production levels ranging from 1,000 to 1,200 barrels of oil per day (bopd).
With this development, the total production from the Baúna project stands at approximately 22,000 bopd, bolstered by the contribution of around 8,600 bopd from the SPS-92 well. Karoon has underscored that all production wells associated with the Baúna project are now operational, marking a significant rebound for the company.
Carri Lockhart, CEO and Managing Director of Karoon, expressed her views on the matter: “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.”
This commitment not only highlights the company’s resilience but also emphasizes its focus on operational excellence. Lockhart further noted, “With Baúna’s major capital work programs now complete, Karoon is entering a phase of optimizing performance and maximizing value from those investments. Pleasingly, since the FPSO revitalization campaign, the Baúna FPSO has been performing at the high end of the targeted 90-95% operating efficiency range.”
Karoon positions itself as a key player in the Brazilian oil market, with aspirations for higher production, reduced capital expenditure, and enhanced cash flow generation in the latter half of 2026, collectively dependent on stable oil prices and favorable operating performance.
Looking ahead, Lockhart stresses the importance of a stable financial framework: “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.”
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