Karoon cuts 2024 guidance on lower US output

Market: Crude oil, Natural gas
19/04/24

Australia-listed oil producer Karoon Energy has cut its production guidance for 2024 to reflect lower production from its stake in the Who Dat floating production system in the US' Gulf of Mexico.

Who Dat's weaker well and facility performance has led to the lower guidance, with Karoon now expecting to produce 29,000-34,000 b/d of oil equivalent (boe/d) in 2024, down from a previous 31,000-37,000 boe/d guidance. Karoon said it and joint-venture partner LLOG Exploration will continue to prioritise higher value oil production over gas for the remainder of the year.

The firm's January-March output rose by 17pc against October-December 2023. Who Dat's production on a net revenue interest (NRI) basis was 9,000 boe/d for January-March, with Karoon downgrading its forecast NRI production from 4mn-4.5mn boe in 2024 to 3-3.5mn boe.

But output from Karoon's Bauna asset offshore Brazil was 15pc lower than the previous quarter because of continuing reliability problems with Bauna's floating production, storage and offloading (FPSO) vessel, the shut-in of the SPS-88 well for the full period and natural field decline.

Production for January-March at Bauna was 24,000 b/d, down from 28,000 b/d the previous quarter. Karoon expects to resume production from the well during July-September following an intervention, assuming no delays in regulatory approval.

Bauna's annual maintenance will take place next month with a three-week shutdown of the FPSO planned to boost reliability.

By Tom Major

Karoon Energy results
	Jan-Mar '24	Oct-Dec '23	Jan-Mar '23	y-o-y % ±	q-o-q % ±

Sales revenue ($mn)	197	209	144	37	-6
Production (b/d)	34,000	29,000	22,000	55	17
Sales volume (b/d)	30,000	28,000	22,000	36	7
Average prices ($/bl)
Bauna oil price	76	83	73	4	-8
Who Dat sales gas ($/mn ft³)	2.95	2.22	n/a	n/a	33
Who Dat oil, condensate, NGLs	78	73	n/a	n/a	7
Source: Karoon Energy

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