Karoon Energy has completed the $115m acquisition of the Cidade de Itajaí floating production, storage and offloading (FPSO) vessel through its wholly owned Brazilian subsidiary, Karoon Petróleo & Gás.
The FPSO, previously owned and operated by Altera & Ocyan (A&O), has been a core production facility for Karoon Energy’s wholly owned Baúna oil project in Brazil’s southern Santos Basin. The deal was announced in February 2025.
Karoon Energy had leased the vessel from Altera & Ocyan prior to acquiring full ownership. The acquisition is part of the company’s broader strategy to strengthen its control over critical offshore infrastructure and enhance production optimisation capabilities.
To ensure a stable transition, Karoon Energy had entered into a transition services agreement with Altera & Ocyan. Under this arrangement, Altera & Ocyan will continue to operate the FPSO during an interim phase until Karoon Energy is ready to assume full operational responsibility.
The company has initiated a tender process to select a new operations and maintenance (O&M) contractor. This process is on track for completion by mid-2025, at which point the new contractor will take over FPSO operations on Karoon Energy’s behalf.
Karoon Energy CEO and managing director Julian Fowles said: “Taking ownership of the Cidade de Itajaí FPSO marks a significant milestone in Karoon’s evolution over the past five years from an explorer to an operator of offshore oil and gas production assets.
“Owning the FPSO gives Karoon direct strategic control over the facility. This will enhance our ability to manage operational performance and reduce long-term operating costs, as well as provide us with greater flexibility to revitalise the facility, thereby potentially extending field life and increasing the value of the Baúna Project.”
The Cidade de Itajaí FPSO has been operating at the Baúna field since production commenced in 2013.
Originally built in 1985 and later converted into an FPSO in 2012, the vessel features a fluid handling capacity of approximately 80,000 barrels of liquid per day and an oil storage capacity of around 631,000 barrels. The vessel has served as the central infrastructure for processing and storing hydrocarbons extracted from the Baúna field.
Karoon Energy has also established a dedicated transition team to work alongside Altera & Ocyan and the incoming contractor. The team will focus on maintaining safe, reliable, and efficient production operations throughout the handover period.
Once the transition is complete, Karoon Energy will oversee the FPSO’s strategic planning and lifecycle optimisation, while the new service provider handles day-to-day operations.
The acquisition aligns with Karoon Energy’s ongoing commitment to expanding its upstream portfolio and integrating key infrastructure into its long-term production strategy. The company holds assets across Brazil, Australia, and the US and is listed on the Australian Securities Exchange (ASX).
