A&D Opportunities

Petrobras Initiates Sale Process for the Onshore Bahia Terra Cluster

By Mahati K L
November 05, 2020
a minute read
Bahia Terra Cluster, Petrobras

Brazilian national oil company Petroleo Brasileiro SA (Petrobras) has commenced a sale process for divesting its 100% stake in a set of 28 onshore production field concessions located in the state of Bahia. The concessions are jointly called the Bahia Terra Cluster.

The Bahia Terra Cluster is located in the Recôncavo and Tucano basins, in different municipalities of Bahia, and includes access to processing, logistics, storage, transportation, and outflow infrastructure. The cluster includes around 1,700 wells in operation, 19 collection stations, 12 collection points, two oil treatment stations, six collection and compressor stations, four water injection stations, and approximately 980 km of oil & gas pipelines.

The assets to be sold also include two oil storage and handling parks with all the infrastructure for receiving, storing, and draining oil for the Landulfo Alves Refinery (RLAM), the Catu Natural Gas Processing Unit, and 10 electrical substations. Between January and August this year, production from the Bahia Terra Cluster averaged approximately 17,779 barrels of oil equivalent per day (boe/d), of which 79% was oil.

Petrobras has announced several asset sales since it initiated a privatization plan 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 the Covid-19 pandemic.

Bids are due by November 13th, 2020. The teaser, which includes key information about the opportunity, as well as the eligibility criteria for selection of potential participants in the sale process, is available on the Petrobras website.

JP Morgan is acting as exclusive financial advisor to Petrobras for the sale.

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