Australia's Karoon wraps up $720mn US Gulf of Mexico deal

Australia-listed Karoon Energy has completed a $720mn deal to acquire stakes in various oil and gas fields in the Gulf of Mexico from LLOG Exploration, a US-based company, it said on December 22. The deal was announced last month.

As part of the agreements, Karoon has acquired a 30% interest in the Who Dat and Dome Patrol fields, along with associated infrastructure such as the Who Dat floating production system (FPS). Additionally, Karoon has obtained approximately a 16% interest in the Abilene field. The deal also involves acquiring various interests in adjacent acreage containing exploration and appraisal opportunities, including the Who Dat East (40%), Who Dat West (35%), and Who Dat South (30%) areas.

“We are delighted to have completed the Who Dat acquisition. This transaction is expected to be both value and earnings accretive for Karoon,” Karoon CEO Julian Fowles said. “The Who Dat and Dome Patrol fields are low cost producing assets with near and medium term expansion opportunities, located in a prolific, world class hydrocarbon basin in a stable and well understood regulatory and fiscal jurisdiction.”

“The transaction provides a number of strategic benefits to Karoon, including increased scale and both asset and geographic diversification. This long life producing asset, together with the appraisal and exploration opportunities, will also help offset the natural decline from the Baúna project in Brazil,” he added.

The company currently has a presence in Australia and Brazil.