Petrobras firms up Karoon and Trident deals for sale of $1.5 billion worth of assets

Brazilian oil and gas giant Petrobras has signed contracts with Trident Energy and Karoon Gas for the sale of upstream assets in shallow waters in Campos and Santos Basins off Brazil, in the total amount of $1.5 billion.

FPSO Cidade de Itajaí; Source: Karoon

As reported earlier in July, Karoon placed the best bid in the process to acquire a 100% operating interest in Santos Basin offshore Brazil concession BM-S-40, which contains the producing Bauna light oil project.

Furthermore, Offshore Energy Today reported earlier this week that Trident had placed the best final bid for the Pampo and Enchova clusters.

In a statement on Wednesday, July 24 Petrobras said it had signed the contracts with Trident for the sale of 100% of its interest in the Pampo and Enchova clusters, located in shallow waters in the Campos Basin, and another one with Karoon for the sale of 100% of its interest in the Baúna field (awarded area BM-S-40), located in shallow waters in the Santos Basin.

 

Pampo & Enchova clusters

 

The transaction amount is $851 million, to be paid in two installments: $53.2 million upon signing of the contract; and $797.8 million, before adjustments, on the closing date.

The contract also provides for the additional payment of contingent amounts of up to $200 million, depending on future oil prices.

The so-called Pampo and Enchova Hubs are located in the Campos Basin, off the coast of Rio de Janeiro, and include the Enchova, Enchova Oeste, Marimbá, Piraúna, Bicudo, Bonito, Pampo, Trilha, Linguado and Badejo fields. Current total oil and gas production from these fields is about 25.5 thousand barrels per day through the PPM-1, PCE-1, P-8 and P-65 platforms.

With this transaction, Trident will be the operator of these concessions with 100% stake. The closing of the transaction is expected to happen during the first half of 2020.

 

Bauna field

 

The transaction amount is $665 million, to be paid in two installments: $49.9 million upon contract signature; and $615.1 million, before adjustments, on the closing date.

The Baúna field, located in the Santos Basin off the coast of the state of São Paulo, started its operations in February 2013 and has a current output of about 20,000 barrels of oil per day through the FPSO Cidade de Itajaí. With this transaction, Karoon will become the operator with 100% stake.

Karoon’s Managing Director, Robert Hosking, said: “The company has been working very hard over the past three years to acquire a high quality production asset with robust economic returns. Through the acquisition of the Baúna asset Karoon has delivered on its highest strategic priority.”

“Baúna will provide Karoon shareholders with material oil production (currently approximately 20 Mbopd before development workovers) and a platform for future growth. The transaction will be transformational for Karoon shareholders, providing significant exposure to reserves, resources and high margin oil production.”

“The acquisition of Baúna opens a new phase for Karoon as a significant ASX listed oil producer. It is expected to generate significant operational and logistical synergies with Karoon’s other 100% owned southern Santos Basin exploration and development assets.”

Offshore Energy Today Staff


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