Asset A&D

Petro Rio Increases Stake in the Wahoo Field Offshore Brazil

By Mahati K L
March 05, 2021
2 minutes read
Wahoo and Itaipu Fields, Brazil

Petro Rio SA has entered into an agreement with TOTAL E&P do Brasil Ltda., a wholly-owned subsidiary of French energy major TOTAL SA, to acquire an additional 28.6% interest in the BM-C-30 concession (which contains the Wahoo field) located in the Campos basin, offshore Brazil. The terms of the transaction have not been disclosed.

Petro Rio had previously signed an agreement with a subsidiary of BP Plc in November 2020 to acquire an initial 35.7% operated interest in the Wahoo field and a 60% operated interest in the BM-C-32 concession (containing the Itaipu field) in the Campos basin, for approximately US$100 million. The completion of the transaction with BP remains subject to receipt of regulatory approvals.

Upon completion of the acquisitions from TOTAL and BP, Petro Rio will hold a 64.3% operated interest in the Wahoo field, with IBV Brasil Petroleo Ltda, a 50:50 joint venture between India’s Bharat PetroResources Ltd. and Videocon Energy Brazil Ltd., holding the remaining 35.7%.

The BM-C-30 (C-M-101) concession is located in the Campos basin, off the coast of Rio de Janeiro in a water depth of 1,400 m. The Wahoo field, which was discovered in 2009, and includes five exploration wells drilled between 2008 and 2013. The concession also includes a carbonate reservoir at the pre-salt layer at a depth of 5,000 to 7,000 m, and contains production potential of over 140 million barrels of oil (MMbbls), with estimated average initial productivity of over 10,000 barrels of oil per day (bbl/d) per well.

The current work program on the concession includes the drilling of four producer wells, two injector wells, and the deployment of a subsea manifold with multiphase pumps for the flow of oil and injected water. The Wahoo development shares all its infrastructure with the nearby Frade field, and the gas produced will be used to generate energy for the Frade FPSO. The estimated project development costs for the Wahoo field are US$300 million for the tieback, US$360 million for well drilling, US$100 million for subsea equipment, and US$40 million for adjustments to the Frade FPSO.

Listed on the Brazilian B3 Exchange, Petro Rio is currently focused on offshore production operations in the Campos basin (Polvo and Frade fields) and the Camamu-Almada basin (Manati field). The company also holds interests in exploration licenses in the Foz do Amazonas basin.

Banco Safra and Scotiabank are advising Petro Rio on the deal.

The completion of the transaction is subject to customary closing conditions, including the receipt of necessary regulatory approvals.

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