Karoon Energy (ASX:KAR) said that its wholly-owned Brazilian unit, Karoon Petróleo & Gás will acquire the Cidade de Itajaí floating production, storage, and offloading facility from Altera & Ocyan for $115 million plus around $8 million of transaction costs, according to a Thursday Australian bourse filing.
Cidade de Itajaí is the production facility for Karoon's Baúna project in Brazil.
The deal is subject to customary approvals, which are expected to be received by April 30.
The firm plans to appoint a new contractor to operate and maintain the facility on its behalf, while its unit will take over the overall ownership and strategic optimization plans.
The acquisition is expected to be funded from existing cash on hand.
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