• Karoon's Brazilian subsidiary completes acquisition of Bauna FPSO for US$115 million
• Transition Services Agreement signed with previous owner to ensure smooth handover
• Tender process for new service provider to support Karoon as FPSO operator is progressing

Karoon Energy Ltd's wholly owned Brazilian subsidiary, Karoon Petróleo & Gás Ltda., has completed the acquisition of the Baúna Floating Production, Storage and Offloading (FPSO) vessel, the Cidade de Itajaí, from Altera & Ocyan (A&O). The total consideration for the FPSO was US$115 million plus approximately US$8 million in transaction costs, with the final payment of US$85 million made on 30 April 2025. A Transition Services Agreement has been signed with A&O to ensure continuity of operations and a smooth handover process as Karoon assumes greater operational control of the FPSO. The tender process for a new service provider(s), who will support Karoon as operator of the FPSO into the future, is progressing as planned and is expected to be concluded in mid-2025. Karoon's CEO and Managing Director, Dr Julian Fowles, stated that taking ownership of the Cidade de Itajaí FPSO marks a significant milestone in Karoon's evolution from an explorer to an operator of offshore oil and gas production assets. Owning the FPSO will enhance Karoon's ability to manage operational performance, reduce long-term operating costs, and provide greater flexibility to revitalize the facility, potentially extending field life and increasing the value of the Baúna Project.