3R Petroleum Acquires the Polo Fazenda Belém Cluster in Brazil
Brazil’s national oil company, Petroleo Brasileiro SA (Petrobras) has signed an agreement with SPE Fazenda Belém SA, a wholly-owned subsidiary of 3R Petroleum e Participações SA, for the sale of its 100% interest in the Fazenda Belém and Icapuí (Polo Fazenda Belém) onshore fields in the Potiguar basin, for a total consideration of US$35.2 million, subject to customary closing adjustments.
Under the terms of the agreement, the total transaction value of US$35.2 million includes an initial consideration of US$8.8 million payable upon signing of the agreement, an additional consideration of US$16.4 million to be paid upon closing the transaction, and a further consideration of US$10.0 million payable within 12 months of the closing of the transaction.
The Polo Fazenda Belém cluster, which is located in the state of Ceará, had an average production of approximately 803 barrels of oil per day (bbls/d) during H1-2020. Petrobras currently holds a 100% operated interest in the cluster. In September 2017, Petrobras initiated a sales process to divest its entire operated interest in five clusters of onshore fields (namely Fazenda Belém, Macau, Sergipe Terra 1, Sergipe Terra 2, and Sergipe Terra 3) comprised of 19 concessions located in Ceará, Rio Grande do Norte, and Sergipe.
The buyer, 3R Petroleum, is a privately-held independent oil & gas company based in Rio de Janeiro. The company is focused on the redevelopment of mature oil fields across Latin America, and currently holds interests in concessions in Brazil, Venezuela, Peru and Argentina. 3R Petroleum is backed by funds managed by Brazilian investment group Starboard Asset Ltda.
“This transaction is in line with the strategy of portfolio optimization and improvement of the company’s capital allocation, focusing its resources increasingly on deep and ultra-deep waters, where Petrobras has shown great competitive edge over the years,” Petrobras said in a press release.
The transaction is subject to the fulfillment of various conditions precedent, including approval by the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP), Brazil’s oil industry regulator.