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Karoon and Petrobras renegotiate terms of Baúna field sale

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Oilfield Technology,

Petrobras has announced that, in common agreement with Karoon Petróleo & Gás Ltda (Karoon), a subsidiary of Karoon Energy Ltd, defined adjustments have been made to the terms of the contract for the sale of Petrobras's entire interest in the Baúna field to Karoon.

Petrobras cited the impact caused by the COVID-19 pandemic and the difficulty to address the previous conditions initially defined as the reason for the adjustments.

The adjustments under the contract took into account the extension of the term to address the conditions precedent to the closing and the payment definition of the agreed amount, of US$665 million, in two installments:

  • a installment of US$380 million, consisting of US$49.9 million already paid by Karoon on 24 July 2019, US$150 million to be paid at the closing date with the price adjustments. The remaining amount will be paid in 18 months after the closing and;
  • a contingent installment of US$285 million to be paid until 2026.

The Baúna field, located in the Santos Basin off the coast of the state of São Paulo, started its operations in February 2013 and has a current output of about 16 000 bpd through the FPSO Cidade de Itajaí. With this transaction, Karoon Petróleo & Gás Ltda will become the operator with a 100% stake.

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