Karoon Energy will advance with the development of Who Dat East project following the final investment decision by the joint venture operated by LLOG, the field is located in block MC 509-1 at a depth of approximately 1,300 meters in water.
The approval moves the project into its development phase with the goal of starting production during the second half of 2028. The planned capital investment for Karoon is between US$155 million and US$165 million.
Who Dat East will utilize existing production infrastructure
Specifically, Who Dat East will be developed using a single well, the plan includes completing the discovery well drilled in 2024 and connecting it to the production infrastructure already operating in the area.
To that end, the project includes the construction of a underwater pipeline approximately 29 kilometers to the Who Dat floating production system. Underwater controls will also be installed and minor upgrades will be made to the FPS.
This configuration will allow the oil and gas produced at Who Dat East to be blended, transported, and processed using Who Dat’s existing infrastructure. The hydrocarbons will then follow the same marketing routes used by the current operation.
Production of the Who Dat East project would begin in 2028
Besides, Karoon Energy it expects the first production to arrive during the second half of 2028, the initial estimate contemplates a gross production of approximately 6,500 barrels per day of liquids and 50 million standard cubic feet per day of gas.
On a net interest on revenue (NRI) basis, Karoon’s stake would initially amount to about 2,600 barrels per day of liquids and 20 million standard cubic feet per day of gas.
In terms of oil equivalent, the company estimates that Who Dat East would initially contribute around 5,900 net boepd on an NRI basis with an estimated mix of 45% liquids and 55% gas.
Karoon estimates an IRR of over 20%
Furthermore, the initial development of Who Dat East presents a projected internal rate of return of over 20% under the average scenario used by the company.
The net investment attributed to Karoon is estimated to be between US$155 million and US$165 million, of that amount, the company expects to disburse between US$15 million and US$20 million during the second half of 2026.
The company will also review the contingent resources recorded for Who Dat East within its 2026 reserves and resources closing assessment. Project approval will allow consideration of reclassifying some of those resources.
LLOG will operate the Who Dat East development
The project’s participation structure allocates 40% to LLOG as the operator, 40% to Karoon USA, and the remaining 20% to Westlawn Americas Offshore.
Carri Lockhart, CEO and managing director of Karoon Energy, noted that achieving FID will allow the incorporation of low-cost, high-margin production when Who Dat East comes online.
We are delighted to have reached the final investment decision (FID) for Who Dat East, this development is economically attractive and will bring significant, low-cost, high-margin production to Karoon when it comes online in the second half of 2028.
Carri Lockhart, CEO and Managing Director of Karoon Energy.
The executive also highlighted the collaboration with LLOG and Westlawn Americas Offshore and noted that the next step will be to begin the construction phase of the project.
Source: OE Digital
Photo: Shutterstock
