Karoon Energy Ltd · ASX:KAR
Karoon Energy — Corporate Update (September 2023)
39 slides from Karoon Energy's corporate update, Sep 25, 2023
Slide 1: Brazil Field Trip Presentation
25 September 2023 Company Announcements Office ASX Limited Dear Sir / Madam For personal use only Brazil Field Trip Presentation Enclosed is a presentation that is to be made by the CEO and Managing Director today. This announcement was authorised by the CEO and Managing Director. Yours faithfully D
Slide 2: Karoon Energy Brazil Field Trip
For personal use only Karoon Energy Brazil Field Trip September 2023
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Karoon Energy Ltd. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation
Slide 4: Welcome
For personal use only Julian Fowles CEO and Managing Director Welcome
Slide 5: Safety Moment & Emergency Exits
Safety Moment & Emergency Exits 1 Emergency stairs 2 Emergency elevator 3 Reception In even of emergency follow directions of Karoon’s For personal use only emergency staff Leave by nearest fire exit stairs Only use the emergency lift if you are unable to use the emergency stairs 1 2 Evacuate to mus
Slide 6: Investor Field Trip Agenda
Investor Field Trip Agenda Date Time Topic Speaker 25 September 9:00am Introduction & Opening remarks Julian Fowles 9:10am Presentation – Investing in Brazil Antonio Guimarães For personal use only Presentation – Operations overview Rudimar Lorenzatto/ Antonio Corte Presentation – Neon and New Ventu
Slide 7: Introducing Karoon's team
Introducing Karoon’s team For personal use only Julian Fowles Antonio Guimarães Rudimar Lorenzatto Antonio Corte Cristina Marinho CEO & MD EVP and President Karoon Brazil SVP Operations Senior Asset Manager Trading Manager Flavio Vianna Ann Diamant Fernando Mouta Neon Project Manager Martin Austgule
Slide 8: Strategic Objectives
Strategic Objectives Reliability of base production to help unlock foundation for further growth For personal use only Focus on maintaining safe and reliable production from Baúna with integrity of the FPSO, Cidade de Itajaí, a high priority Progress technical and commercial studies for Neon on whet
Slide 9: Investing in Brazil
For personal use only Antonio Guimarães EVP and President Karoon Brazil Investing in Brazil
Slide 10: Brazilian Government and regulatory environment for oil and gas
Brazilian Government and regulatory environment for oil and gas Brazil is a Federal republic, under a presidential system For personal use only President is Head of State and Head of Executive Government Federal government divided into three branches: executive, legislative and judicial Four year te
Slide 11: Doing business in Brazil
Doing business in Brazil Political Overview New left-wing administration took office in 2023 Government Take % For personal use only Expected to establish governmental initiatives aimed at benefiting lower Kazakhstan 38% income groups Russia 40% United States 49% Canada 54% Suspension of divestment
Slide 12: Brazilian Oil and Gas Sector Overview – Timeline
Doing business in Brazil Brazilian Oil and Gas Sector Overview – Timeline For personal use only Federal Government 1st Pre-salt discovery, monopoly, carried out by Revocation of the requirement for which led to the Petrobras (NOC controlled Petroleum Law terminates Petrobras to participate in explor
Slide 13: Brazil's oil and gas industry: historical background and outlook
Brazil’s oil and gas industry Historical background and outlook Brazil production and outlook Since market was opened in 1997, use only upstream sector now has diverse 6 set of international and domestic EPE’s target is to increase Brazil’s oil players 5 Creation of production production to >5MMbbl/
Slide 14: Karoon's interests in the Santos Basin, Brazil
Karoon’s interests in the Santos Basin, Brazil For personal use only Production and Development Blocks Neon Exploration Blocks Goia BRAZIL Fields & Discoveries SANTOS Baúna, Piracaba BASIN and Patola Prospects Block S-M-1537 Production ranking by operator in Brazil 1. Petrobras 2. PRIO Itajai 3. Equ
Slide 15: Operations Overview
For personal use only Rudimar Lorenzatto Senior Operations VP 36 years’ experience in upstream O&G, including serving as Petrobras Asset Operations Manager in the Campos Basin (10 years), Executive Manager for Offshore Well Construction (6 years), Antonio Corte Senior Asset Manager Overview Executiv
Slide 16: Highlights
Highlights Karoon’s highest priority is safe and reliable operations. Focus on maintaining a safe and healthy work environment, FPSO integrity For personal use only Despite six-week shut-in following leak in gas flare system, well interventions and Patola development resulted in 51% increase in Baún
Slide 17: HSSE
HSSE Focus on strong safety culture through Baúna operations Safety and Environmental Performance FY23 FY22 FY21 For personal use only Lost Time Injuries 1 4 1 Restricted Work Cases 1 0 0 Medical Treatment Cases 2 0 1 Work Exposure Hours 1,947,000 1,027,000 625,928 Total Recordable Injury Rate (per
Slide 18: Overview of Baúna Project Operations
Overview of Baúna Project Operations Karoon’s anchor asset First Baúna oil registered on 16 February 2013 Ba ú n a P r o je c t p r o d u c t io n u n it : FP S O Cid a d e d e It a ja í Karoon acquired Baúna in November 2020 for US$380m plus up to For personal use only US$285m oil-price related con
Slide 19: Baúna intervention campaign
Baúna intervention campaign Project overview Baúna Intervention Campaign commenced in May 2022, completed in For personal use only September 20221 Program comprised changing Electrical Submersible Pumps (ESPs) of two wells (in PRA-2 and SPS-92) and installing gas lift in one well (SPS-56). Fourth in
Slide 20: Patola field development project
Patola field development project Project overview For personal use only Patola Project development successfully completed in April 2023 Wells came onstream in March 2023 at peak rtaes of >12,000 bopd each, prior to natural decline to current level of ~12,500 bopd (combined) Reservoir quality for bot
Slide 21: Baúna production
Baúna production 35 30 Baúna Patola 1st oil 25 intervention For personal use only campaign 20 completed ‘000 bbl/day 15 10 5 Unplanned Shutdown 0 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 September 20221 – Baúna intervention delivered. March 2023 – Patola fi
Slide 22: Baúna FPSO operating performance
Baúna FPSO operating performance Focus on maintaining FPSO efficiency 1 and active well management FPSO Efficiency1 100% For personal use only 80% 60% 40% 20% 98% 83% 95% 96% 91% 98% 97% 91% 88% 59% 83% 0% Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 FPSO Effic
Slide 23: FPSO Cidade de Itajaí modular schematic
FPSO Cidade de Itajaí modular schematic For personal use only Flare Tower 22
Slide 24: Video - FPSO Cidade de Itajaí
Video - FPSO Cidade de Itajaí For personal use only 23
Slide 25: Possible FPSO Life Extension Projects
Possible FPSO Life Extension Projects Studies are ongoing on extending Baúna field life – a. from 2028 to end 2032 (beyond current A&O lease) and b. potential extension from 2033 to 2038 For personal use only 1C, 2C and 3C Contingent Resources of 10.5 MMbbl, 11.1 MMbbl and 14.9 MMbbl, respectively,
Slide 26: Ship to Ship (STS) offloading operations
Ship to Ship (STS) offloading operations Operated by Karoon in Brazil BRAZIL Historically, Baúna crude offloaded into Shell-operated For personal use only shuttle tankers and transported to Uruguay, transferred to larger vessels (STS) by Shell together with other similar grade Brazilian oil, and tra
Slide 27: Neon
For personal use only Flavio Vianna Neon Project Leader 39 years’ experience in upstream O&G, serving as General Manager M&A and New Ventures (2 years), Manager & Executive Manager at Corporate Strategy (2 years), General Manager for International Department (2 years), and General Manager for E&P Pr
Slide 28: Potential Neon development
Potential Neon development Control wells drilled safely and below budget, feasibility studies underway • Both Neon control wells successful, achieved pre-drill objectives: For personal use only Neon-1 confirmed 39 API oil and oil-water contacts closely aligned to seismic predictions Neon-2 confirmed
Slide 29: Neon foundation project concepts under consideration
Neon foundation project concepts under consideration Stand-alone FPSO or subsea tieback Concepts being evaluated include: Concept 1 – Standalone FPSO Development For personal use only Standalone FPSO development S-M-1037 New build or conversion Redeployed unit Subsea tie-back: Neon Neon field tied b
Slide 30: Indicative timeline for potential decisions on Neon
Indicative timeline for potential decisions on Neon On-going project maturation targeting FID in 2025 and First Oil in 2028/29 For personal use only Entry to Concept Final Investment Select Decision Late 1QCY24 Late CY25 Front End Engineering First Oil and Design Late CY28/ Early CY25 Early CY29 Tim
Slide 31: Potential Neon development summary
Potential Neon development summary1 Neon now fully appraised with three wells - Neon-1 and –2 still For personal use only undergoing evaluation Potential for Karoon to establish a significant second operated production hub and to build scale in Brazil, replacing Baúna production as that field mature
Slide 32: New Ventures
For personal use only Martin Austgulen SVP New Business 16 years experience in oil and gas. Petroleum engineering on International assignments with TotalEnergies in Europe, Africa and Asia before joining Karoon in 2015. New Ventures
Slide 33: Neon hub-style development
Neon hub-style development Possible longer-term opportunities If Neon is commercial, a hub-style development can be considered, involving tie-back of other existing and potential For personal use only accumulations near Neon: Undrilled Neon West prospect located 2km west of Neon. Structurally and st
Slide 34: Assessing Inorganic Growth Options
Assessing Inorganic Growth Options Evaluation ongoing For personal use only Continuing to actively assess inorganic growth opportunities Focused on oil assets in Brazil and US Gulf of Mexico, where Karoon's existing technical and commercial teams have significant experience and knowledge Rigorous an
Slide 35: Sustainability
For personal use only Ricardo Canela Head of Climate, Sustainability & Social Projects 31 year’s experience working in Heavy Industry sectors, including 22 years in O&G industry, serving as HSSE Coordinator and HSSE Manager (El Paso) and S.A Regulatory & HSSE Manager and Head of Climate, Sustainabil
Slide 36: Delivering Sustainable Operations
Delivering Sustainable Operations Community Five Pillars For personal use only Delivering Sustainable Operations Health, Safety Climate People and Community Environment and Security Culture Link to sustainability report: https://www.karoonenergy.com.au/wp-content/uploads/230823-FY23-Sustainability-R
Slide 37: Climate strategy
Climate strategy Committed to remain Carbon Neutral1 for Baúna Project; targeting Net Zero2 by 2035 Carbon Management Action Plan: Reduce Scope 1 emissions from existing operations where possible For personal use only 5,293 tCO2e emissions avoided by mooring buoy installation in FY22 and ongoing opt
Slide 38: Social Projects
Social Projects Improving quality of life of people and communities impacted by our operations Tw o n e w p r o je c t s For personal use only Litre of Light Project to provide illumination in Quilombola Alto da Serra community Based on social development methodology, which allows engagement with vo
Slide 39: Glossary
Glossary Term Definition ANP Agência Nacional do Petróleo, Gás Natural e Biocombustíveis. For personal use only Baúna Concession BM-S-40 containing the producing Baúna, Piracaba and Patola light oil fields in Brazil. bbl or barrel Barrel of oil = 42 United States gallons; equivalent to approximately