Karoon Energy (ASX:KAR) selects Maersk Drilling to rehabilitate Bauna project

ASX-listed energy player Karoon Energy (ASX:KAR) has selected Danish-based rig operator Maersk Drilling to rehabilitate its Bauna oil field in Brazil’s Santos Basin region.

Karoon’s CEO and MD Julian Fowles explained the company’s decision “We are delighted to have signed this contract with Maersk Drilling, a global leader in offshore drilling, with one of the youngest and most advanced rig fleets in the industry”.

The verdict came after a 10-horse race to select the developer for a workover programme at the Bauna project, as Maersk Drilling emerged the winner of the competitive tender process.

The contract valued at $US34 million is has an open clause to extend the rig’s stay on the site to work on the prospective Patola field development. Maersk Drilling is expected to complete the relocation its rig from the Caribbean to Brazil in the second half of FY22.

Karoon Energy emphasised the significance of the partnership, “The contract marks another significant milestone in the evolution of Karoon into a substantial production and development company with material near term growth potential”.

Shares in Karoon Energy (ASX:KAR) are trading 0.4 per cent higher at $1.19

 
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Source: Finance News Network