Petrobras offloads stake in Papa-Terra, signs Itapu agreement
Offshore staff
RIO DE JANEIRO – Petrobras has signed an agreement to sell its full interest in the producing Papa-Terra field in the Campos basin offshore Brazil to 3R Petroleum Offshore.
The transaction price of $105.6 million includes $90 million of contingent payments related to production levels and future oil prices.
Papa-Terra is in the BC-20 concession, in a water depth of 1,200 m (3,937 ft). Operations started in 2013: recent production averaged 17,900 boe/d through the P-61 tension leg wellhead platform and the FPSO P-63.
3R Offshore is controlled by 3R Petroleum Óleo e Gás. Its strategy is to revitalize mature offshore fields.
Petrobras also announced that it had signed the Itapu co-participation agreement with Pré-sal Petróleo.
This will regulate the Transfer of Rights Contract (ToR) and the production-sharing contract (PSC) for the Surplus of the Transfer of Rights for the Itapu field, in the presalt Santos basin.
Negotiations started following the bidding process in November 2019, which led to Petrobras acquiring 100% of the rights to explore and produce the surplus volume of the ToR from the Itapu field.
The two companies then defined the field’s development plan, production forecasts, and recoverable volumes estimates.
Total compensation owed to the ToR (100% Petrobras) under the PSC is around $1.274 billion, which will be fully recovered by the company as Cost Oil, as the contracted party in the PSC.
The agreement remains subject to approval by Brazil’s National Petroleum, Natural Gas and Biofuels Agency (ANP).
07/12/2021
