Karoon Energy has downgraded its 2026 production guidance following confirmation of an extended infrastructure outage at its primary US asset.
The company said production from the Who Dat E manifold, located in the deepwater Gulf of Mexico, will not resume this year. Recent technical analyses by the joint venture’s operator, LLOG Exploration Company, revealed that complex remediation works are required to address a flexible subsea riser failure.
The delayed restart has forced Karoon to cut its full-year output forecast for the Who Dat field by roughly 40 per cent, dropping from an initial target of 2.1 to 2.5 million barrels of oil equivalent (MMboe) down to a revised range of 1.2 to 1.5 MMboe.
The outage strips approximately one million barrels from the midpoint of the company’s annual output, lowering total group guidance for 2026 to between 7.2 and 8.2 MMboe from 8.1 and 9.2 MMboe.
A remediation timeline is now being finalised, with engineering teams aiming to remove the failed riser during the third quarter of 2026.
Following laboratory analysis and necessary repairs, production via the E manifold is anticipated to return in the second half of 2027.
Despite the setback, the remainder of the Who Dat field continues to produce at a net rate of roughly 3,000 barrels of oil equivalent per day.
Development work also continues elsewhere on the asset, with production from the A-1 sidetrack well remaining on track to start by mid-year, while the G-1 sidetrack is scheduled for the final quarter of 2026.
Karoon maintained its independent production guidance for its flagship Baúna operations offshore Brazil.
While intervention programs at the Brazilian asset have experienced mechanical disruptions and severe weather delays, management confirmed that both the SPS-92 and PRA-2 wells remain on schedule to come online around mid-year.
In light of the US supply constraints, Karoon has commenced a comprehensive review to optimise its capital expenditure commitments across its global portfolio.
