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Who Dat East development sanctioned with Karoon USA at 40%

The Who Dat East Joint Venture has sanctioned the Gulf of America development, with Karoon USA holding a 40% working interest and first production targeted for the second half of 2028.

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The Who Dat East Joint Venture has sanctioned development of the Who Dat East field in the Gulf of America, USA, with first production targeted for the second half of 2028.

The joint venture comprises operator LLOG with a 40% working interest, Karoon USA with 40%, and Westlawn Americas Offshore with 20%.

Who Dat East is located in lease MC 509-1 in approximately 1,300 m of water. The development will use a single well, completing the discovery well drilled in 2024 and tying it back to the existing Who Dat Floating Production System through a 29 km pipeline.

The project also includes subsea controls and minor upgrades to the existing production system.

Capital expenditure attributable to Karoon Energy is estimated at $155–165 million. Of this, $15–20 million is expected to be spent in the second half of 2026.

Based on the current development mid-case assumptions, Karoon Energy estimates the project will generate an internal rate of return above 20%.

Initial gross production is forecast at approximately 6,500 bopd of liquids and 50 MMscf/d of gas. On Karoon Energy’s current net revenue interest basis, this corresponds to around 2,600 bopd of liquids and 20 MMscf/d of gas, or approximately 5,900 boepd.

The expected production mix is approximately 45% liquids and 55% gas.

Who Dat East production will be combined with existing Who Dat production and processed through current infrastructure. Karoon Energy’s net revenue interest is currently approximately 40% and is expected to revert to around 32% after the approved royalty relief is exhausted.

Following the development sanction, Karoon Energy will review its booked Who Dat East Contingent Resources as part of its 2026 year-end Reserves and Resources review, including potential recategorisation of a portion of those resources.

Editorial Note:
This article was prepared with the assistance of AI tools to enhance clarity and efficiency.
All information has been reviewed and verified by the HMT News editor.
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