Asset A&D

PetroReconcavo Acquires Petrobras’ Stake the Remanso Cluster

By Mahati K L
December 24, 2020
a minute read
Alto do Rodrigues Onshore

Brazilian national oil company Petroleo Brasileiro SA (Petrobras) has signed a contract with privately-held PetroReconcavo SA for the sale of its 100% interest in a set of 12 onshore fields located in Bahia State for US$30 million, subject to certain adjustments. The fields are jointly known as the Remanso Cluster.

Under the terms of the agreement, the consideration will be paid in three tranches, including US$4 million payable upon signing the agreement, US$21 million at the closing of the transaction, and the remaining US$5 million payable one year after closing.

PetroReconcavo had been contracted by Petrobras since 2000 to provide services for production operations and project implementation in most of the fields in the cluster. With the closing of the transaction, PetroReconcavo will become the concessionary of the fields in the cluster, and its current service contract with Petrobras will be terminated.

The Remanso Cluster is comprised of the Brejinho, Canabrava, Cassarongongo, Fazenda Belém, Gomo, Mata de São João, Norte Fazenda Caruaçu, Remanso, Rio dos Ovos, Rio Subaúma, São Pedro and Sesmaria fields, located in different municipalities of Bahia. Between January and November this year, production from the cluster averaged approximately 4,341 barrels of oil equivalent per day (boe/d), of which 90% was oil.

Mata de São João-based PetroReconcavo is engaged in the exploration, production, transportation, processing, and commercialization of oil & gas in Brazil, with a current focus on operations in the Reconcavo basin in the State of Bahia.

The deal is subject to customary closing conditions, including the receipt of approval by the Brazil’s Agencia Nacional do Petroleo Gas Natural e Biocombustiveis (ANP).

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