Petrobras to Divest 44.44% Stake in the Tayrona Block, Offshore Colombia
Brazil’s national oil company Petroleo Brasileiro SA (Petrobras) has commenced a sale process for divesting its stake in the exploratory part of the Tayrona Block located off the north-eastern coast of Colombia.
Petrobras is the current operator of the block with a 44.44% working interest (which includes a 4.4% stake to be transferred to Petrobras from Equinor ASA upon its withdrawal from the block). Colombian state-owned Empresa Colombiana de Petróleos SA (Ecopetrol) holds the remaining 55.56% stake. Under the terms of the Joint Operating Agreement (JOA), Ecopetrol also holds pre-emption rights to acquire Petrobras’ stake in the block.
The Tayrona Block covers an area of 8,024 sq. km located offshore in the Guajira basin, a frontier area with the potential for gas discoveries similar to those potential on the shores of the South Atlantic and Caribbean. The area also contains a proven oil system in shallow waters, with evidence of generation and migration in deep waters. The block is currently in the Posterior Exploratory Programme 1 (PEP1) phase and has minimal exploration commitments to be fulfilled.
“This transaction is in line with the portfolio optimization strategy and the improvement of the company’s capital allocation, increasingly concentrating its resources in deep and ultra-deep waters, where Petrobras has demonstrated great competitive edge over the years,” the company stated in a press release to announce the start of the sale process.
Key information about the Tayrona Block as well as the eligibility criteria for the selection of potential participants in the sale process is available in the opportunity teaser published on the Petrobras website. Expressions of interest are due to be submitted by August 12th, 2020.