Karoon Energy expands its oil production with Who Dat East
Oil production plans in the United States following approval for the development of the Who Dat East field . The joint venture responsible for the asset made the final investment decision to execute a subsea project that will require between $155 and $165 million in net capital for Karoon.
According to current planning, the first production will arrive during the second half of 2028. The development will allow new volumes of oil and gas to be incorporated into the infrastructure already operating in Who Dat, reducing the need to build a separate processing system.
Who Dat East is moving towards its development phase
Specifically, Who Dat East is located in block MC 509-1 at a depth of approximately 1,300 meters. LLOG operates the joint venture and holds a 40% working interest, Karoon USA controls another 40%, while Westlawn Americas Offshore holds the remaining 20%.
In addition, the project includes an initial development of a single well; the work includes completing the discovery well drilled in 2024 and installing the necessary subsea controls to bring it into production.
The plan also requires constructing a pipeline approximately 29 kilometers long to connect the well to the Who Dat floating production system. Minor adjustments will also be made to these facilities to accommodate the increased production volumes.
This strategy leverages existing operational assets; the oil and gas extracted from Who Dat East will be combined with Who Dat's production and then transported and processed using its existing infrastructure.
Oil production will begin in 2028
Furthermore, the commissioning is planned for the second half of 2028. In its initial phase, Who Dat East aims for a gross production of approximately 6,500 barrels per day of liquids and 50 million standard cubic feet of gas per day.
For Karoon, these figures would initially represent about 2,600 barrels per day of liquids and 20 million standard cubic feet per day of gas based on its net interest on revenue.
By converting both components to a combined measure, Karoon estimates an initial production of approximately 5,900 net barrels of oil equivalent per day. Roughly 45% would be liquids and 55% gas.
Karoon will allocate up to $165 million
In terms of investment, Karoon estimates that its participation in the development will require between $155 million and $165 million. Of that amount, between $15 million and $20 million are planned for the second half of 2026.
The company also estimates that the initial development phase could achieve an internal rate of return exceeding 20% under the average scenario used to evaluate the project. This estimate depends on several factors, including adherence to the schedule and budget, regulatory approvals, contractor performance, and energy market conditions.
The use of existing infrastructure plays a key role in this approach. Instead of developing separate processing facilities for the new field , Who Dat East will be directly connected to the Who Dat production system.
Who Dat East expands Karoon's presence in the United States
Meanwhile, the project represents another step in Karoon's expansion of its offshore operations in the United States. The company entered the WhoDat market in late 2023 by acquiring stakes in production and exploration assets from LLOG.
Subsequently, drilling at Who Dat East allowed for progress in the commercial evaluation of the discovery. In October 2024, Karoon raised its net 2C contingent resource estimate for the asset by 191% to 15.7 million barrels of oil equivalent.
As of year-end 2025, those contingent 2C resources included 7 million barrels of oil and condensate and 52.2 billion cubic feet of net natural gas for Karoon. Following project approval, the company expects to review its Who Dat East resources as part of its 2026 reserves and resources assessment.
Who Dat's infrastructure will support the new supply
Finally, the development model will allow the new volumes to follow the same commercial routes used by existing production. This integrates Who Dat East into an already established operation and concentrates investment in the well, the subsea connection, and the necessary adaptations to the floating system.
Carri Lockhart, CEO and managing director of Karoon Energy, emphasized when announcing the decision that the company expects to achieve low-cost, high-margin production once the project begins operations. She also noted the collaboration of LLOG and Westlawn Americas Offshore in bringing the development to the construction phase.
Thus, the final investment decision transforms Who Dat East from a discovery evaluated over the past few years into a project with a clear timeline. If the program progresses as planned, the field will begin producing oil and gas during the second half of 2028.
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