Electrical Fault at Baúna Sparks Production Risk, Intervention Delayed
Karoon Energy has upgraded its 2025 production guidance even as a key downhole pump failure at its Baúna Project in Brazil restricts output. The company is planning a rig-based intervention to restore full capacity by mid-2026.
- Electrical cable failure reduces SPS-92 well output to 2,500–3,000 bopd
- Partial production resumed using remaining cables; full repair requires rig intervention
- Replacement ESP and cable already in stock; intervention planned for Q2 2026 earliest
- Baúna Project 2025 production guidance raised to 7.3–7.8 million barrels
- Total company production guidance increased to 9.7–10.5 million barrels of oil equivalent
Unexpected Pump Issue at Baúna
Karoon Energy disclosed that on 13 August 2025, an electrical submersible pump (ESP) in the SPS-92 well at its Baúna Project in Brazil experienced a failure of one of three electrical cables supplying power. This malfunction caused the pump to shut down, reducing production from approximately 8,500–9,000 barrels of oil per day (bopd) to a constrained 2,500–3,000 bopd.
Despite this setback, Karoon managed to partially restore production by utilizing the remaining two cables, allowing the well to continue operating at a reduced rate. The company is actively investigating remediation options with equipment supplier SLB, anticipating that a rig-based intervention will be necessary to replace the faulty ESP and fully restore output.
Planning for Recovery and Future Production
Karoon has already secured a replacement ESP assembly and electrical power cable, with plans underway to identify and contract a suitable drilling rig. However, regulatory approvals and additional materials are required, meaning the intervention is unlikely to commence before the second quarter of 2026.
Notably, the company’s CEO, Dr Julian Fowles, emphasized that while the electrical cable failure occurred earlier than expected, the pump itself continues to operate within performance expectations, albeit at reduced capacity. The anticipated lifespan of such ESPs is typically three to four years, and replacement plans for SPS-92 and another well, PRA-2, were already part of Karoon’s 2026 strategy.
Upgraded Production Guidance Amid Challenges
In a somewhat counterintuitive move, Karoon has raised its 2025 production guidance for the Baúna Project from 6.7–7.7 million barrels to 7.3–7.8 million barrels. This upgrade reflects strong performance in the first half of the year prior to the electrical fault. Combined with steady output from the Who Dat field, total company production guidance for 2025 now stands at 9.7–10.5 million barrels of oil equivalent.
This revised outlook suggests confidence in the company’s operational resilience and its ability to manage the temporary production dip until the planned intervention. It also underscores the importance of Baúna to Karoon’s overall portfolio and the company’s commitment to maintaining production momentum.
Looking Ahead
While the immediate impact of the electrical cable failure is a production constraint, the planned rig-based intervention and replacement of the ESP are expected to restore full capacity. The timeline, however, remains dependent on rig availability and regulatory approvals, introducing some uncertainty into the recovery schedule.
Investors and analysts will be watching closely as Karoon progresses with its remediation plans and monitors production trends at Baúna and other assets throughout the remainder of 2025.
Bottom Line?
Karoon’s ability to navigate this technical hiccup while raising production targets highlights operational strength but leaves timing risks ahead.
Questions in the middle?
- Will rig availability or regulatory delays push the ESP replacement beyond Q2 2026?
- How will the reduced output until intervention affect Karoon’s cash flow and reserves?
- What contingency plans does Karoon have if similar electrical faults occur in other wells?
