Karoon Energy has commenced intervention plans to repair and replace the faulty cable due to an identified fault in the electrical system of the SPS-92 well at the Baúna field in Brazil. This fault was detected after the installation of a new electrical system three months ago to enhance production at this field.
Controlled Production Shutdown
Karoon shut down the SPS-92 well in a controlled manner on September 22, 2026, to protect the integrity of the pump and investigate the system fault. Based on analyses and tests conducted in recent days, it has been determined that there is a fault in one of the three electrical phases in the new power cable for the Electric Submersible Pump (ESP).
The company has stated that the pump is currently operating conservatively and only on two phases to maintain safe and reliable operations. To restore full well performance, a field intervention is necessary to replace the faulty cable system.
Planning for Intervention and Impact on Production
Karoon Energy has emphasized that it has the option to lease a suitable drilling rig and has begun planning for the intervention. This plan includes obtaining permits, securing necessary equipment, and services, but the timing of execution depends on the procurement of the required permits.
The company estimates that approximately 3,500 barrels of oil per day (bopd) will be delayed due to the cable fault until its replacement. However, this delay is expected to have no impact on the reserves of the Baúna field.
Karri Lockhart, CEO of Karoon Energy, expressed that the electrical fault in SPS-92 is very disappointing, especially considering that this new ESP system and cable have been operational for less than three months. He also stated that prior to this fault, the well was performing as expected and benefiting from increased reservoir pressures following the resumption of water flooding operations.
Karoon is looking to plan for intervention and restore SPS-92 to full production to compensate for the delayed barrels and maximize production from other Baúna wells. Simultaneously, the company is seeking ways to obtain equipment warranties and secure insurance claims as well.
The company is also investigating the root cause of the SPS-92 failure and assessing this incident within the context of relevant policy conditions. Based on current understanding and preliminary non-binding advice from insurance consultants, Karoon believes that the company’s insurance program may cover part of the production revenue loss and nearly all costs associated with the intervention and repairs.
Following the production decrease at SPS-92, Karoon has revised its Baúna project production forecast for 2026 from 6.0 to 6.7 million barrels to 5.4 to 5.7 million barrels. Given that the Who Dat guidance has not changed, total production for 2026 is expected to reach 6.6 to 7.2 million barrels of oil equivalent (boe).
