Brazil restarts offshore oil production with higher output

Brazil has resumed production in one of its offshore oil fields, marking an important step in boosting its oil output. 

Here are the key points to understand this development:

• Production restarted in the Santos Basin: Offshore production from the Bauna oil field, located in the Santos Basin, resumed on March 27 after a maintenance shutdown earlier that month.

• Well SPS-88 back online: Operated by Karoon Energy, the SPS-88 well—shut since November 2023 due to a mechanical blockage in the gas lift valve—is now producing around 2,000 barrels per day (b/d) with a restricted choke and is gradually increasing output, according to Argus.

• Output surpasses pre-shutdown levels: Total production from the Bauna field has now reached approximately 26,500 b/d, exceeding levels seen before the March 7 shutdown. This increase is primarily due to the successful return of the SPS-88 well on March 28.

• Well intervention ahead of schedule: Originally planned for the last quarter of 2024, the intervention work was successfully completed in February, accelerating the timeline for recovery.

• FPSO acquisition underway: Karoon Energy is finalizing the acquisition of the Cidade de Itajaí floating production, storage, and offloading (FPSO) unit, which operates at the Bauna field. The transaction is expected to close in April.

• Operational updates expected: A new contractor for the FPSO’s operations and maintenance will be announced in mid-2025. Once terms are agreed, Karoon will provide an updated cost estimate for the field’s ongoing operations.

This update underscores Brazil’s continued investment in offshore oil production, while highlighting how operators like Karoon Energy are accelerating maintenance strategies and acquiring key infrastructure to increase efficiency and output.

Brazil restarts offshore oil production with higher output