Petro Rio SA signed an agreement with BP Energy do Brasil Ltda. for 35.7% acquisition of BM-C-30 Block (Wahoo) and 60% of BM-C-32 Block (Itaipu) in the Campos basin presalt.
Wahoo lies 30-35 km north of Frade field in 1,400 m of water with a carbonate reservoir in the presalt at 5,000-7,000 m. Oil is 30º API, low viscosity, and contains associated gas that will be used to generate energy for the Frade FPSO. Petro Rio plans a production cluster which will tie back to the Frade FPSO. Initial productivity is estimated at more than 10,000 b/d from four producer wells and two injector wells, with upside of 40,000 b/d based on pilot well formation tests. Production potential is over 140 million bbl, the company said.
Itaipu, which was discovered in 2009 and has three pilot wells, lies close to the Whales Park cluster. Preliminary studies indicate that the accretion is potentially shared with the southeast portion of the cluster. Development of the area may go through a unitization process before development definition.
The acquisition, which is subject to regulatory approvals and usual conditions, will have a $100 million fixed portion divided into five payments ($17.5 million split between signing and closing, $15 million in December 2021, and balance due in 2022), plus a $40 million earn-out contingent on Itaipu’s unitization (or first oil).
Under the new agreement, Petro Rio will be operator at Wahoo with (35.7%) with partners IBV Brasil Petróleo (35.7%), Total (20%), and Anadarko (8.6%). Petro Rio will be operastor at Itaipu (60%) with partners Total (26.7%) and Anadarko (13.3%).