Karoon contracts Maersk developer rig for 2022 Baúna workover campaign

April 22, 2021

Karoon Contracts Maersk Developer Rig for 2022 Baúna Workover Campaign,and the potential Patola Development and Neon Control Well

Karoon Energy announces that, following a competitive tender process involving 10 different rig owners, the Maersk Developer rig, operated by Maersk Drilling, has been contracted for the Baúna workover campaign. Karoon has the option to retain the rig for the potential development of the Patola field, which is located adjacent to Baúna within the BMS-40 Production Licence, and drilling of a control well on the nearby Neon light oil discovery. The “firm” value of the contract is approximately US$34 million, including rig modifications and a mobilisation fee.

The rig, currently located in the Caribbean, will mobilise to Baúna following the completion of its present drilling program and is expected to arrive in Brazil in the first half of 2022.

Karoon Energy’s Chief Executive Officer and Managing Director, Dr Julian Fowles, commented:

“We are delighted to have signed this contract with Maersk Drilling, a global leader in offshore drilling, with one of the youngest and most advanced rig fleets in the industry. The contract marks another significant milestone in the evolution of Karoon into a substantial production and development company with material near term growth potential. The arrival of the Maersk Developer rig will enable Karoon to implement a workover program at Baúna, which is expected to add materially to our production, and is an important step in getting to a final investment decision (FID) for the Patola Development. Karoon also retains flexibility under the contracts with Maersk Drilling to drill the Neon control well.

The Karoon team looks forward to working closely with Maersk Drilling to deliver the Baúna workover campaign safely and efficiently. The program is expected to commence in the first half of 2022 and, subject to FID, activities on the potential Patola development would follow immediately after the workover campaign is complete.”

Baúna

Baúna’s four well workover campaign, which is targeting an increase in production of 5-10 kbopd, comprises the following:

Replacement of downhole pumps in two wells
Installation of gas lift in one well
Re-opening of an oil zone in one well

Patola

The development of the Patola Field, which lies immediately adjacent to the Baúna Field, involves the drilling and completion of two vertical wells which would be tied back to the Baúna FPSO, Cidade de Itajaí. The development has the potential to produce more than 10 kbopd and add incremental reserves to the Baúna asset. A final investment decision on Patola is expected to be taken in the second quarter of 2021.

Neon

Subject to ongoing subsurface and engineering studies, Karoon has the option to extend its contract with Maersk Drilling to drill a control well on the Neon light oil discovery. This well, located approximately 60km north-east of Baúna, will assess the resource further.