Karoon Energy cuts guidance after electrical fault

• Karoon Energy detected an electrical fault at its SPS-92 well, causing deferred production of roughly 3,500 barrels of oil per day.
• The company lowered its 2026 total production guidance to 6.6–7.2 million barrels of oil equivalent and raised unit cost guidance to US$15–16 per barrel.
• An offshore intervention is required to replace the faulty cable system to reinstate full operations at the field.

Karoon Energy (ASX:KAR) lowered its 2026 production guidance after shutting down its SPS-92 well in Brazil due to an electrical fault in the submersible pump's power cable.

The company reduced its Baúna Project output forecast from 6.0–6.7 million barrels of oil to 5.4–5.7 million barrels of oil.

"The electrical fault on SPS-92 is clearly very disappointing, especially given that this new ESP and cable system was in operation less than three months," said Karoon Energy CEO and Managing Director Carri Lockhart.

Karoon Energy reported that replacing the faulty cabling will defer approximately 3,500 barrels of oil per day, while raising unit production cost guidance to US$15–16 per barrel.

The business noted that its insurance coverage may partially offset revenue loss and repair expenses.

Following the announcement, the Karoon Energy share price was unchanged at $1.78.

Karoon Energy operates offshore oil production assets in Brazil's Santos Basin alongside interests in the Gulf of Mexico.

The energy producer recently reported first-half 2026 revenue of US$244.9 million alongside an underlying net profit after tax of US$29.2 million.