PetroRio has received its second cancelation notice, this time from Petrobras, for the Bijupirá and Salema fields offshore Brazil, just two weeks after it received a pink slip from supermajor Shell, leaving the Brazilian minnow completely out of the fields.
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The Fluminense FPSO. Image from Modec. |
Petrobras decided to terminate its US$25 million deal with PetroRio for 20% interest in the concessions of Bijupirá and Salema, which the two entered on 1 July as part of Petrobras’s divestment plan.
The company's divestment plans calls for a total of $15.1 billion in assets from 2015-2016, which Petrobras said includes up to 30% from its exploration and production side.
"According to the decision made by Shell, PetroRio would no longer be the operator of BJSA (the Bijupirá and Salema fields) and, therefore, the acquisition of 20% stake in these fields would not make sense for the implementation of the company‘s strategy," PetroRio said in response to Petrobras terminating the contract.
"The company reassures its growth strategy through the acquisition of producing fields, seeking investment opportunities that generate value for its shareholders. Currently, the company is investing in Polvo Field’s development, in which it holds 100% stake," PetroRio continued.
In mid-February, Shell canceled the divestment of 80% stake in the fields, including the Fluminense floating production and storage offloading unit (FPSO).
Now the UK supermajor and Brazilian giant will take on the fields together, with Shell remaining as the operator, carrying 80% stake, and Petrobras holding the remaining 20%.
Bijupirá and Salema are located in the Campos basin, and are about 80km northeast of PetroRio's 100%-owned Polvo field, and 250km east of Rio de Janeiro, Brazil. The fields cover 40 million sq m with a production of about 22,000 b/d of light oil and 325,000cu m of associated gas, which is equivalent to 24,000 boe/d. Both fields have produced more than 100 MMboe since start up in 2013, in 480-850m water depth. The Fluminense is used in the production process of both fields.
In the deal with Shell, PetroRio had paid 20% of the $150 million deal in cash, with the remaining 80% to be paid upon closing in January 2015.
When the initial deal with Shell Brasil Petróleo was announced, PetroRio said that the acquisition would make it become one of the largest independent producers in the country, operating at an average of more than 30,000 b/d.
Read more:
Shell cancels PetroRio fields, FPSO deal
Petrobras sells Bijupirá, Salema stake
Petrobras to cut investment by 41%
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