Petrobras initiates Urucu Cluster sale, inks deal for Do-Re-Mi

Petrobras has initiated the sale of its entire stake in a set of eight onshore production concessions. Seven are in the Urucu Cluster, in Solimões basin, state of Amazonas, and one is in Sergipe-Alagoas basin, south of Carmópolis field.

The Urucu Cluster comprises Araracanga, Arara Azul, Carapanaúba, Cupiúba, Leste do Urucu, Rio Urucu, Sudoeste Urucu, all in the municipalities of Tefé and Coari, occupying an area of 350 sq km. In the first semester 2020, the cluster's average production was 103,000 boe/d, of which 16,200 b/d was oil and condensate, 13.8 million cu m/d gas and 1,100 ton/day of LPG. In addition to the concessions and their production facilities, oil and natural gas production processing units and production support facilities are included in the transaction. Potential buyers qualified for this phase will receive a process letter with detailed instructions on the divestment process, including guidelines for due diligence and the submission of binding proposals.

Separately, the company signed with Centro Oeste Óleo e Gás Ltda. for sale of its 50% stake in Dó-Ré-Mi onshore field in Sergipe-Alagoas basin in the state of Sergipe. The field is part of the BT-SEAL-13 concession, which also includes Rabo Branco which is not included in the sale. The field has two gas discovery wells without commercial production and sale value is $37,600, paid in a single installment upon the signing date of the transaction. Petrogral Brasil SA is operator and holds the remaining 50% ownership.

These sales are in line with the portfolio optimization strategy and improvement of the company’s capital allocation to increasingly concentrate its resources in deep and ultra-deep waters.