Petrobras launches sale of three Brazilian offshore assets

Brazilian oil giant Petrobras has started the opportunity disclosure stage for the sale of its entire working interest in Peroá and Cangoá production fields and the Malombe discovery in the Espírito Santo Basin offshore Brazil.

This stage of the process, also known as a teaser, also relates to the sale of the shared outflow and offshore production facilities and the onshore gas pipeline up to the Cacimbas Gas Treatment Unit.

The company holds a 100 percent stake in the shallow water fields of Peroá and Cangoá, whose current production is around 900,000 cbm per day of non-associated gas, and also holds an 88.9 percent stake in the deepwater BM-ES-21 block which contains the Malombe discovery.

Petrobras said the plan to divest the assets was is in line with the optimization of its portfolio and the improvement of Petrobras’ capital allocation, aiming at generating value for its shareholders.

The Peroá and Cangoá shallow water fields, located some 50 kilometers offshore Linhares, contain turbidite sandstone reservoirs and non-associated gas and condensate fluid.

The fields have been operational since 2006 and 2009, respectively, with peak cluster production of over 7.3 million cbm per day of non-associated gas in 2008 and total cumulative gas production of 9,499 million cbm as of year-end 2018.

The production system is based on up to six wells connected to the unmanned offshore platform PPER-1, which sits in 67 meters of water depth. Another well is directly tied to the gas pipeline connecting the platform to the UTGC processing facility onshore.

Among the wells connected to the platform, three are operational in Peorá and one is operational in Cangoá.

Malombe discovery

The Malombe discovery was made in 2011 with the drilling of 1-ESS-206 exploration well in the BM-ES-21 concession, which was acquired during ANP’s 6th bidding round in 2004.

Currently, the area is under a discovery appraisal plan with the declaration of commerciality expected in the second semester of 2019.

The development concept of the discovery consists of a subsea tie‐back of the well exploration well to the PPER-1 platform. The final investment decision (FID) is expected in the fourth quarter of 2019, and first gas is expected in the first quarter of 2023 with peak production reaching 2.5 million cbm of gas per day.

It is worth noting that Repsol decided to exit its 11.1 percent stake in the concession in June, in favor of Petrobras. The withdrawal is still subject to the approval by the National Agency of Petroleum, Natural Gas and Biofuels (ANP). So, should ANP approve Repsol’s withdrawal, Petrobras’ working interest on the Malombe field would increase from 88.9 to 100 percent.

Offshore Energy Today Staff

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