en.Wedoany.com Reported - Karoon acquired the FPSO Cidade de Itajaí, deployed on the Baúna project in the BM-S-40 block, and subsequently signed a transition service agreement with A&O to ensure operational continuity and a smooth handover of the vessel.
The FPSO operations were officially transferred recently. This followed an intensive internal capacity-building period for the Australian Securities Exchange (ASX)-listed company, including personnel recruitment, contract transfers, establishment of management systems and processes, and obtaining Brazilian regulatory approvals.
Over 80% of the existing FPSO team has been transferred to Karoon and its primary maintenance contractor, Gran Services. The transition service contract between Karoon and A&O expires on June 1, 2026, enabling the FPSO owner to further optimize operational costs.
Karoon CEO and Managing Director Carri Lockhart stated that 2026 is one of the busiest years in the company's history, with over 700 people involved in executing strategic projects, including the safe completion of the FPSO operations handover. This transition marks a significant step for Karoon toward becoming a full-fledged offshore oil and gas production operator. Lockhart expressed gratitude for the tireless efforts of the team and contractors in preparing for and achieving this milestone. The FPSO operations are strategically important to Karoon, and the company is committed to delivering outstanding safety performance and reliable operations, creating long-term value for the Baúna project.
The ASX-listed company announced in August 2025 the launch of revitalization and life extension works for the Baúna project, with estimated expenditures of approximately $55 million to $65 million in 2026 and $80 million to $90 million between 2030 and 2034.
Planned maintenance shutdowns and revitalization work on the floating platform are expected to significantly improve system stability, enabling the FPSO to achieve continuous operations with efficiency rates of 90% to 95%.
The Baúna project includes the Baúna, Piracaba, and Patola fields within the BM-S-40 concession area off the coast of Brazil. The FPSO Cidade de Itajaí is capable of operating in water depths of up to 1,000 meters and began operations in Brazil in February 2013.
The unit was built at Jurong Shipyard in Singapore in 1995 and underwent conversion in 2012, with a production capacity of 80,000 barrels of oil per day and compression of 2 million cubic meters of natural gas per day.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
