PetroRio to own operating stake in Albacora Leste

PetroRio to own operating stake in Albacora Leste

29 Apr 2022

PetroRio’s subsidiary PetroRio Jaguar Petróleo has firmed an agreement with Petrobras for the acquisition of the latter’s 90% operating stake in the Albacora Leste field. The value of the transfer is equivalent to US$2.2bn.

After the signing of this agreement, PetroRio paid US$293m to Petrobras, with the last payment of US$1.66bn coming with the close of the transaction. Following annual Brent prices for 2023 and 2024, contingent payments of up to US$250m will also be made by the company.

The acquisition is still pending approval from the National Petroleum Agency (ANP), Brazilian market watchdog CADE, and a waiver from Repsol, which owns the field’s last 10% stake, in the next 30 days.

PetroRio has plans to invest about US$150m in P-50, Albacora Leste’s FPSO. The amount will be destined for the improvement of safety and operational efficiency.

A redevelopment campaign will also be underway, with 17 production wells and five injection wells to be connected or drilled in two phases over the course of five years. This will cost between US$70m and US$75m per well.

Albacora Leste, in the northern Campos Basin, is operational since 1998. In the first quarter of 2022, it had an average daily production of 25,400 barrels of oil and 615,300m³ of gas.

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