Petrobras one step closer to sale of two shallow water fields

February 28, 2018

Brazilian oil company Petrobras is making headway with plans to sell its entire interest in two shallow water fields located in the Campos Basin off the coast of Rio de Janeiro as part of a wider divestment program.

Petrobras revealed its intention to divest its interests in seven sets of shallow-water fields (total of 30 concessions) located in the States of Ceará, Rio Grande do Norte, Sergipe, Rio de Janeiro, and São Paulo in July 2017.

Petrobras is the operator in all but two concessions with a 100% stake. In the Pescada and Arabaiana concessions Petrobras is the operator with a 65% stake.

Petrobras’ stake in the average production of oil and natural gas from these fields, in the first half of 2017, was 73 thousand barrels of oil equivalent per day.

Each divestment project is made up of several phases, including the non-binding phase; the binding phase; concession of exclusive negotiation; transaction approval by senior management and signature of contracts; and closing.

The non-binding phase for all seven sets of shallow-water fields started last October.

On Tuesday, February 27, 2018, the binding phase started for the assignment of all of Petrobras’ exploration, development and production rights in Enchova and Pampo Clusters, located in Rio de Janeiro state.

Petrobras also said on Tuesday that, at this stage of the project, the invitation letters are issued to interested parties qualified in the previous phase, with detailed instructions about the divestment process, including the guidelines to conduct due diligence and submit binding proposals.

Enchova & Pampo clusters

The Enchova package is located in shallow water at a distance of about 90 km from the coast with reservoir depth between c.1,800 to 2,600m.

The Enchova cluster contains Bicudo, Bonito, Enchova, Enchova Oeste, Marimbá and Piraúna concessions and Pampo Cluster includes Badejo, Linguado, Pampo and Trilha concessions.

Enchova is currently producing from 32 wells with five platform, one fixed and four floating. Oil and gas are exported through pipelines to Cabiúnas, the gas processing plant, located onshore.

The Pampo package is located in shallow water at a distance of about 80 km from the coast with reservoir depth between c.950 to 2,950m.

This package of assets is currently producing from 27 wells with two platforms, one fixed and one floating.

Oil and gas are transported through pipelines to platform PCE-1 in the Enchova field, and subsequently to the Cabiúnas gas processing plant located onshore

Both Enchiva and Pampo licenses expire in 2025 with potential to extend.