Oil and Gas Producer Karoon Energy (ASX:KAR) Production at the Bauna oil field off the coast of Brazil has been suspended. This comes after two anchor chains on the floating production storage and offloading (FPSO) ship Cidade de Itajai broke.

On December 11, 2024, the company and FPSO operator Altera&Ochan conducted a controlled outage as a precautionary measure to protect personnel and the environment onboard the vessel.

The FPSO continues to operate stably and Karoon expects production to resume in the week of December 23, 2024, following completion of at least one repair to the chain and regulatory approval. are.

The “shutdown” (closing of a valve to stop oil extraction) will impact Karoon’s 2024 calendar year Bawna production guidance, from 7.5 million barrels to 7.77 million barrels (1 million barrels of oil) to 7.2 million barrels to 740 million barrels (1 million barrels of oil). It was revised downward to 10,000 barrels.

Another shortage

In other bad news, Karoon also reported a production shortfall at its Houdat project in the Gulf of Mexico. Who Dat’s full-year outlook has been lowered from 3.0 to 3.1 million barrels (1 million barrels of oil equivalent) to 2.9 million barrels.

This was due to an extended maintenance outage due to Hurricane Rafael, which increased downtime from the planned 10-14 days to 18 days.

Total 2024 production guidance for the Karoon business has been revised downward from 1.05 million to 1.08 million boe to 1.01 million to 1.03 million boe.

Karoon shares fell 9.68% to close at $1.26. Year-to-date, it has fallen 39.13%.