Petrobras Initiates Asset Sale in the Sergipe-Alagoas Basin
Brazilian national oil company Petroleo Brasileiro SA (Petrobras) has commenced a sale process for divesting its entire stake in 11 producing field concessions in the Sergipe-Alagoas basin, jointly designated as the Carmópolis cluster.
The Carmópolis cluster is comprised the Carmopolis, Aguilhada, Angelim, Aruari, Atalaia Sul, Brejo Grande, Castanhal, Ilha Pequena, Mato Grosso, Riachuelo, and Siririzinho fields located in different cities in Sergipe, and includes access to processing, logistics, storage, transportation, and outflow infrastructure for oil and natural gas.
The cluster includes almost 3,000 wells in operation, 17 oil treatment stations, a gas station in Carmópolis, approximately 350 km of gas and oil pipelines, and the administrative bases of the Carmópolis, Siririzinho, and Riachuelo fields. Average daily production from the cluster during the nine-month period ended September 30th was approximately 10,430 barrels of oil equivalent per day (boe/d), of which around 96% is oil.
The Carmópolis cluster also includes the Atalaia operational complex, which contains the Aracaju waterway terminal (Tecarmo), a NGPU, and an oil processing station. The complex also includes a 48.6 km long Bonsucesso-Atalaia oil pipeline, which transports the oil production from the concessions to Tecarmo, and all the production facilities contained in the ring fence of the eleven concessions, along with ownership of some land.
The opportunity teaser for the divestiture, which contains information about the opportunity as well as the eligibility criteria for the selection of potential participants in the sale process is available on the Petrobras website. Expressions of interest are due to be submitted by November 9th, 2020.
Petrobras has announced several asset sales in recent years as part of a privatization plan that commenced in 2015, following several corruption scandals that involved allegations against several company officials for paying bribes and accepting kickbacks in exchange for awarding contracts. The company has also been adversely affected by depressed domestic demand in Brazil due to a high number of Covid-19 cases.
JP Morgan is acting as the exclusive financial advisor to Petrobras for the sales process.