Karoon Energy has pushed back production restoration at the Who Dat E manifold to the second half of 2027, prompting a significant downgrade to its 2026 output forecast. Operational setbacks at Who Dat and weather-impacted Baúna interventions weigh on near-term volumes.
- Who Dat E manifold production postponed to 2H27
- 2026 Who Dat output guidance slashed by nearly 50%
- Overall 2026 production guidance trimmed to 7.2–8.2 MMboe
- Baúna intervention programs delayed but still on track for mid-year
- Karoon reviewing 2026 investment expenditure across projects
Who Dat Production Delays Extend to 2027
Karoon Energy (ASX:KAR) has been dealt a fresh operational blow with the operator of the Who Dat Joint Venture, LLOG Exploration Company, confirming that production through the Who Dat E manifold will not resume in 2026 as previously hoped. Following further technical analysis, the failed riser removal is now scheduled for Q3 2026, with production restoration not expected until the second half of 2027, contingent on laboratory results.
Significant Downgrade to 2026 Production Guidance
This delay has forced Karoon to slash its 2026 production guidance for Who Dat from 2.1–2.5 million barrels of oil equivalent (NRI) down to 1.2–1.5 million barrels. The overall group production forecast is also reduced, now targeting 7.2–8.2 million barrels, down from 8.1–9.2 million barrels. Notably, production guidance for the company’s Brazilian assets remains unchanged, reflecting a mixed operational picture.
Upcoming Well Operations and Baúna Setbacks
Despite the manifold setback, Karoon is pressing ahead with other development activities. The A-1 ST well at Who Dat is on track to commence production by mid-year, while operations on the G-1 ST well are planned for Q4 2026, pending approvals to accelerate a sidetrack. Meanwhile, intervention programs at the Baúna field have encountered mechanical and weather-related delays, but both the SPS-92 and PRA-2 wells are still expected to be online around mid-year.
Investment Expenditure Under Review Amid Operational Challenges
Karoon is currently reassessing its 2026 capital allocation across the Baúna, Who Dat, and other projects to optimise spending in light of the operational delays. The remediation plan for Who Dat’s deferred production and the timing of sidetrack approvals will be critical to watch as they will influence the company’s near-term output and financial performance.
Bottom Line?
Karoon’s revised guidance underscores operational risks at Who Dat, with production setbacks extending into 2027 and capital plans under review.
Questions in the middle?
- How will the timing of the Who Dat remediation impact Karoon’s cash flow in 2027?
- What are the prospects for accelerating the G-1 ST well sidetrack approvals?
- Could further delays at Baúna or Who Dat prompt additional guidance revisions?