As a result of the acquisition, Karoon will be able to deliver a quality production asset supported by prudent funding arrangements.
Managing director Robert Hosking said it was part of Karoon’s strategy to acquire a producing asset and he was proud to complete the acquisition.
“We are delighted to finally assume operatorship of the Bauna asset which will enable Karoon to transform from an oil and gas exploration company to a substantial oil production company,” Hosking said.
“We are looking forward to continue running the Bauna field in a safe and efficient manner while seeking to realise the full value of the field for our shareholders via our planned workers of Bauna’s under-utilised production infrastructure and the development of the Neon and Patola fields.
Last year Karoon completed a share placement to raise approximately $175 million, giving the company the funds it requires to acquire the Bauna oil field.
Karoon announced it would acquire the asset from Petrobas for $954 million in July 2019.
The offshore site currently produces 20 million barrels of oil per day with this expected to expand to 33 million barrels of oil per day in 2022.