Posted on April 28, 2022

Brazilian oil giant Petrobras has sealed a deal to divest its operating stake at the Albacora Leste field in the Campos basin to local independent PetroRio for $2.2 billion.

The sale — one of the biggest since Petrobras started an ambitious divestment programme years ago — will nearly double PetroRio’s output.

Per the terms of the transaction, PetroRio will pay $292.7 million on the contract execution date, another $1.66 billion at the closing of the deal and up to $250 million in contingent payments depending on future Brent crude prices.

Petrobras is selling its 90% stake in Albacora Leste, but the deal with PetroRio is subject to certain conditions, such as the non-exercise of first right refusal by project partner Repsol Sinopec, which holds the remaining 10% interest in the field.

“The transaction is in line with the company’s portfolio management strategy and the improved allocation of its capital aiming to maximise value and provide greater return to the society,” said Petrobras.

Albacora Leste produced on average 25,400 barrels per day of oil and 615,300 cubic metres per day of natural gas in the first quarter via the P-50 floating production, storage and offloading vessel for a total hydrocarbons output of approximately 29,300 barrels of oil equivalent per day.

PetroRio produced about 35,200 boepd in the first quarter from the Frade and Polvo-Tubarao Martelo fields, plus its 10% interest in the Manati natural gas development.

Albacora Leste also holds potential for pre-salt production in the future, as Petrobras made the Arapuca discovery beneath the salt layer in the field.

PetroRio is also the front-runner to acquire the Albacora field from Petrobras in a potential partnership with Spain’s Cobra. The two sides have been in exclusive negotiations for months.

Separately, PetroRio informed it has received the operating licence from federal environmental regulator Ibama to carry out drilling activities in the Frade field.

The Ocyan semi-submersible rig Norbe VI is already on its way to the field to conduct the revitalisation campaign, which will consist initially of one oil producing well and two water injection wells.

A second phase encompassing three producers and one injector is set to take place at a later date, after the company implements a tie-back of the Wahoo pre-salt discovery to the Valente FPSO operating at Frade.

Source: https://www.upstreamonline.com/finance/petrobras-sells-albacora-leste-field-to-petrorio-for-2-2-billion/2-1-1208883

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