Karoon Energy has terminated an exclusivity agreement with Enauta Energia over the proposed sale to Karoon of a 50% interest in the producing Atlanta oilfield offshore Brazil.

The Australia-based company said it was unable to complete the necessary due diligence and conclude negotiations of acceptable terms in respect of the potential transaction during the agreed exclusivity period.

Karoon had also withdrawn its conditional, non-binding and incomplete offer related to the potential transaction.

“Given the material scale of the Atlanta project, undertaking and completing satisfactory due diligence and maintaining acceptable terms and risk levels were considered vital by Karoon,” said Karoon, which is the operator of the producing Bauna oilfield off Brazil.

“Karoon will continue to evaluate opportunities in line with its announced strategy of seeking value-accretive, inorganic growth opportunities in the normal course of business.”

The Atlanta oilfield, located in the northern Santos basin, is producing via the Petrojarl I floating production, storage and offloading vessel.

A new FPSO — the Atlanta FPSO (formerly known as OSX-2) — is being built by Yinson Holdings at Dubai-based Drydocks World shipyard for deployment to the Atlanta field in mid-2024.

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