Petrobras starts process to sell certain shallow water assets

Petróleo Brasileiro SA Petrobras has initiated the process to sell certain Brazilian assets in line with its plan to improve the company’s capital allocation, increasingly concentrating its resources in deep and ultra-deep waters.

The company started the opportunity disclosure stage (teaser) for sale of its entire stake in Atum, Curimã, Espada, and Xaréu fields, maritime production concessions in shallow waters in the Mundaú sub-basin, in the state of Ceará (northeast region).

Operating since the 80s, the cluster lies 30 km from the coast in water depths of 30-50 m with reservoir depth of 1,100-2,000 m. Average production in 2019 was 4,200 b/d of oil and 76,900 cu m/d of gas from 32 wells through nine fixed platforms (three of which are manned).

Oil is transported to a third-party floating storage facility (tanker ship) and subsequently offloaded through shuttle tankers. Gas is exported through a pipeline to Lubnor refinery in Fortaleza, Brazil, which is not part of the potential transaction.

On Mar. 27, oil and gas production stopped and the facilities are undergoing hibernation. The concession expires in 2025 with potential to extend.

Petrobras is operator of the fields with 100% participation.

The company also is starting the process to sell its total operated working interests in a group of concessions (Pole) in the Alagoas, Brazil. The process consists of transfer of exploration, development, and production rights of oil and natural gas with integrated facilities.

Pole comprises 7 production concessions (Anambé, Arapaçu, Cidade de São Miguel dos Campos, Furado, Paru, Pilar, and São Miguel dos Campos).

Paru field, with one gas producing well, lies in 24 m water depth. All other fields are onshore.

The average monthly production of the Pole in 2019 was 2,348 b/d of oil and condensate and 856,000 cu m/d of gas, generating 1,010 b/d of LNG.

Among the facilities are two treatment plants (Furado and Pilar) and some 230 km of gas and oil pipelines, including an oil drainage pipeline that connects production to Maceió’s waterway terminal. In addition to concessions and the production facilities, the Pole includes a 2-million cu m/day natural gas processing unit.

The operational base is in the municipality of Pilar, 35 km from Maceió, in Alagoas.

Petrobras is operator and holds 100% working interest in the 7 concessions.