Ecopetrol SA subsidiary Ecopetrol Oleo e Gas do Brasil Ltda. has agreed to acquire 30% of the interests, rights, and obligations in two areas corresponding to the BM-S-54 concession agreement and the Sul de Gato do Mato shared production agreement offshore Brazil.
The farm-in of interest from Shell Brasil Petroleo Ltda.—in Brazil’s Santos basin in the presalt region where the Gato do Mato discovery was made—could incorporate some 90 million bbl of crude oil in contingent resources as of 2020, with production that could total some 20,000 b/d of crude by 2025, the company said.
Shell will reduce its stake from 80% to 50% and continue as operator. Total will retain the remaining 20%. The Brazilian government also participates in the shared production agreement, through Pre-Sal Petroleo SA (PPSA). After discounting this share, the consortium will proportionally maintain the above percentages.
Three wells that have discovered light hydrocarbons have been drilled on the two blocks. The consortium will continue executing activities and operations in order to initiate production in coming years.
Ecopetrol entered Brazil’s presalt region in a 2018 deal with Shell and Chevron to farm in to the Saturno block (OGJ Online, Dec. 21, 2018).
The agreement is subject to approvals by Brazil’s Ministry of Mines and Energy, the country’s National Agency of Petroleum, Natural Gas, and Biofuels, and other customary transaction conditions.