Karoon enters into Brazil agreement with DEA By Martin Kovacs, 31 Jul 2017

Karoon Gas Australia has advised that it has entered into agreements with DEA Deutsche Erdoel to review and evaluate and potentially jointly bid for oil and gas assets in selected areas offshore Brazil.

Karoon advised that the commercial terms bid for any specific asset will be agreed and finalised at the appropriate time as part of the process, while an exclusive option has been granted to DEA for the acquisition of a non-operated interest of up to 50% in Karoon’s five Santos Basin offshore exploration blocks as part of the arrangements, with the exercise of the option being subject to satisfactory due diligence and agreement of terms.

“This agreement is significant in the context of realising Karoon’s strategic ambitions to acquire meaningful oil production in Brazil,” Karoon Managing Director Robert Hosking commented. “Having such a high-quality, well-capitalised partner in our corner will significantly assist the company to achieve this goal.

“DEA is a German-based international oil and gas company with full lifecycle capabilities, which is owned by a well-capitalised investment company, LetterOne Holdings S.A., based in Luxembourg. DEA has excellent operational capabilities, with significant production and earnings, along with ambitious growth strategy, making them a very good strategic fit for Karoon.”