Petroleo Brasileiro S.A. (Petrobras) has signed an agreement to sell its 62.5% working interest in the Papa-terra Deepwater field located in the Campos Basin, Brazil, to 3R Petroleum Offshore SA, a wholly owned subsidiary of 3R Petroleum Oleo e Gas SA, for a purchase consideration of US$105.6 million.
The purchase consideration consists of US$105.6 million, of which (a) US$6 million paid on the present date; (b) US$9.6 million at the closing of the transaction and (c) US$90 million in contingent payments provided for in the contract, related to production levels of the asset and future oil prices.
The Papa-Terra field is a part of the BC-20 concession and is located at a water depth of 1,200 meters. In 2021, the field had an average oil and gas production of 17,900 boed through two platforms namely, P-61 type TLWP (tension leg wellhead platform) and P-63 type FPSO (floating production storage and offloading).
Currently, the partners in the field are Petrobras (62.5%, operator) and Chevron (37.5%).
Credit Agricole Corporate and Investment Bank-Banco Credit Agricole Brasil S.A. (CA-CIB) has been retained as financial advisor by Petrobras for the divestment of the assets.
The transaction is in line with Petrobras’ portfolio optimization and the improvement of its capital allocation, aiming at maximizing value for its shareholders.
The closing of the transaction is subject to compliance with precedent conditions such as approval by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
Papa Terra is the first step into Deep Water for the Major Brazilian Independent operator 3R Petroleum, which dominates the land scene following Petrobras Divestments in Bazil´s Northeast.