Karoon Energy Trims Output Guidance After Brazilian Well Fault

Karoon Energy has cut its production guidance for 2026 after an electrical fault at one of its wells in Brazil.

The company, listed on the Australian stock exchange, shut down the SPS-92 well in the Baúna field to prevent equipment damage and is now running the pump more conservatively while it investigates the cause of the fault.

Karoon expects the issue to keep around 3,500 barrels a day offline until a rig can replace the faulty cabling, which will require permits and arranging services.

The disruption has led Karoon to lower its oil production guidance for 2026 from 6.0-6.7 million barrels to 5.4-5.7 million barrels, while also increasing unit production cost guidance to $15-$16 per barrel of oil equivalent.