Petrobras terminates sale of two oil & gas fields offshore Brazil

Brazilian oil and gas player Brava Energia has confirmed its acquisition of oil and gas fields and associated infrastructure off the coast of Brazil cannot be completed with the country’s state-owned energy giant Petrobras, as a precedent condition for the closing of the sale was not satisfied.

In December 2023, Enauta, now Brava Energia, disclosed a contract, valued at $48.5 million with $7.27 million paid on signing, to acquire the FPSO Cidade de Santos, which MODEC operates in the Uruguá and Tambaú fields.

The FPSO acquisition was linked to the Brazilian firm’s deal with Petrobras for the Uruguá and Tambaú oil and gas fields in the Santos Basin and a 178-kilometer natural gas pipeline connecting the production platform to the Mexilhão field’s natural gas infrastructure.

The company confirmed the contract termination with MODEC in July 2024, regarding the procurement of the FPSO Cidade de Santos, expecting a 50% reimbursement of the amount disbursed at signing.

Given its move to cut short the process for the FPSO purchase and end the deal, the Brazilian player engaged in discussions with Petrobras to terminate the acquisition process for the fields and associated infrastructure.

According to Brava Energia, Petrobras has notified the firm of its decision to terminate the contract for the transfer of its entire stake in the Uruguá and Tambaú fields, as the conclusion of the FPSO acquisition was a precedent condition to close the acquisition of the Uruguá and Tambaú fields.

The amount paid as a deposit, amounting to $3 million on December 21, 2023, will be retained by Petrobras, as outlined in the contract terms.

Recently, Brava Energia inked a deal with PetroReconcavo to set the conditions for the latter’s acquisition of its natural gas outflow and processing infrastructure in Brazil’s Potiguar Basin.