Petrobras Sells Stake in the Deepwater Sergipe Basin Concessions

Source: www.gulfoilandgas.com 5/23/2018, Location: South America

Petroleo Brasileiro S.A. (Petrobras) is considering a partial sale of its world-class development, appraisal and exploration concessions in the Sergipe-Alagoas basin (the Potential Transaction or Process), and has retained Bank of America Merrill Lynch (BofAML) as its exclusive financial advisor (the Advisor).

This portfolio of assets in the Sergipe-Alagoas basin presents an exceptional opportunity to gain nonoperated interests in a world-class development project in a prolific offshore basin in Brazil:
- Opportunity to partner with Petrobras which has an excellent and established exploration and operating track-record in deepwater offshore Brazil;
- High quality Upper Cretaceous sandstones deposited in deepwater systems bearing light oil or gas from Albian and Turonian source rocks;
- Prolific petroleum system with an exceptional exploration success rate of 80%+ on average;
- Assets have been de-risked with 26 wells drilled to-date and a clear path to the Declaration of Commerciality and full scale development;
- Numerous low-risk prospects have been identified and provide significant inventory for long-term future production.

Overview
- Petrobras is offering non-operated interests in four offshore concessions in the Sergipe-Alagoas basin (all operated by Petrobras) across an exploration area of ~44,370 km2.
- Petrobras holds high working interests across the four concessions which are currently under six separate evaluation plans to assess the optimal development approach for the discoveries.
- Preference will be given to a single buyer (or a consortium of buyers) for the joint development of the fields in partnership with Petrobras and existing partners.
- There have been six world-class light oil and gas discoveries across four concessions to-date (deepwater Cretaceous sandstones): Barra, Farfan, Muriu, Moita Bonita, Poco Verde and Cumbe.
- Extensive exploration work has been completed with 26 wells drilled, nine Drill Stem Tests (DSTs) and 7,000+ km² of 3-D seismic.

Concessions : BM-SEAL-4
Current Consortium : 75% Petrobras 25% ONGC
Offered by Petrobras WI : 35%

Concessions : BM-SEAL-4A
Current Consortium : 100% Petrobras
Offered by Petrobras WI :50%

Concessions : BM-SEAL-10
Current Consortium : 100% Petrobras
Offered by Petrobras WI :30%

Concessions : BM-SEAL-11
Current Consortium : 60% Petrobras 40% IBV
Offered by Petrobras WI :20%

Development Plan
- Modular development approach, with FID expected in late 2020 for the first of two currently planned modules.
- The development plan envisages one FPSO for each module with gas export and treatment infrastructure to be built, connecting the discoveries to Brazil’s integrated onshore gas network.

Investment Highlights
- Light oil and gas discoveries to be developed through a staged development concept with two FPSOs.
- Current evaluation plan forecasts the end of the exploration period and Declaration of Commerciality for all discoveries in the second half of 2020 with limited pending commitments.
- Together with Petrobras, the new partner will play a key role in the development of the project.
- All discoveries are located within the four concession limits with unitization required for some reservoirs within these concessions.
- Several low-risk exploration opportunities located in the vicinity of the development area provide upside opportunity and long-term production potential.
- Substantial technical evaluation has already been completed while ongoing studies continue to de-risk the development plan.

For more information about related Opportunities and Key Players visit Brazil Oil and Gas Projects


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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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