Australian player entering Gulf of Mexico with new oil & gas acquisition

Expanding its Asset Portfolio

Australian player entering Gulf of Mexico with new oil & gas acquisition. Australian oil and gas company Karoon Energy is in the process of diversifying and expanding its asset portfolio. Thanks to biding agreements worth $720 million. Which will enable it to get its hands on stakes in oil and gas fields offshore Louisiana. These Gulf of Mexico assets are being acquired from LLOG Exploration.

Deals for the Acquisition

Karoon deemed the deals for the acquisition of a 30% interest in the Who Dat and Dome Patrol oil and gas fields. Along with related infrastructure, including the Who Dat floating production system (FPS) and a 16% stake in the Abilene field, from LLOG Exploration Offshore and LLOG Omega Holdings. In addition, the Australian firm is getting interests in adjacent acreage in the U.S. Gulf of Mexico, which contains Who Dat East (40%), Who Dat West (35%), and Who Dat South (30%).

Dr. Julian Fowles, Karoon’s Managing Director and CEO, commented: “This transformation meets our strategic objectives to acquire a material, value and earnings accretive, producing asset with expansion opportunities in each of Brazil or the Gulf of Mexico (GoM). The GoM is a Tier 1 jurisdiction with a stable and well-understood regulatory and fiscal regime. The Who Dat assets provide Karoon with both geographical and asset diversification. Complementing our existing Brazilian business with a second high-quality operation.

“Production from Who Dat will help offset the natural decline from Baúna and, with a unit operating cost of less than $6 per boe in FY23, will add a high margin, long-term cash flow stream to Karoon. There are significant development and exploration opportunities in our view analogous to Who Dat within the associated acreage. These provide the potential for future infrastructure-led developments, to increase production and extend Who Dat field life. Importantly, sustaining capital requirements are low. And development and exploration activities are expected to be funded from Who Dat cash flows.”

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Source: Offshore Energy

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