Petrobras to sell certain Brazilian production assets for $823m

Petróleo Brasileiro (Petrobras) has announced sale of some of its onshore and offshore producing oil and gas assets in Brazil to 3R Petroleum and Perenco in two separate deals for a total sum of $823m.

In the Rio Grande do Norte state, Petrobras has agreed to sell 34 onshore production fields located in the Potiguar Basin to 3R Petroleum, a newly established oil and gas company in Brazil, for $453.1m.

All the assets being sold under the transaction are mature fields, which have been producing for more than 40 years. Put together, the current production of the divested onshore fields is close to six thousand barrels of oil per day.

Petrobras is offloading the fields to 3R Petroleum in a single package dubbed Polo Riacho da Forquilha. The Brazilian state-controlled company owns 100% in all the fields with the exception of the Cardeal and Colibri fields where it holds stakes of 50% each and the Sabiá da Mata and Sabiá Bico-de-Osso fields where it owns stakes of 70% each.

Petrobras has taken up the sale of the Riacho da Forquilha portfolio to focus its investments in Brazilian deepwater along with other factors.

Upon the closing of the transaction, 3R Petroleum will assume the operatorship of the assets. The closing will be based on meeting of preceding conditions, which includes an approval of the National Agency of Petroleum, Natural Gas and Biofuels (ANP).

In the other transaction, Petrobras has agreed to sell its stakes in Pargo, Carapeba and Vermelho shallow water fields in the Polo Nordeste region located off the coast of Rio de Janeiro state to France-based Perenco for a sum of $370m.

While the Pargo field was discovered in 1975, the Carapeba and Vermelho fields were discovered in 1982. The three Polo Nordeste fields entered into production in 1988.

Petrobras, in a statement, said: “Currently, these fields’ production system is integrated and consists of seven jacket fixed platforms, with current production of approximately 9,000 barrels of oil per day, which is exported through the Garoupa platform (PGP-1) and goes to the continent via pipeline to the Cabiúnas Terminal.”

The sale of the three shallow water fields will be subject to approval from ANP and meeting of other preceding conditions.

Source: https://www.compelo.com/energy/news/petrobras-3r-petroleum-perenco/