Brazilian independent HRT Participacoes em Petroleo SA acquired a 60% working interest and the operatorship stake in the Polvo field from BP Energy do Brasil Ltda, following the Jan. 8 close on a deal worth US$101 million.
In the transaction, HRT also acquired 100% interest in BP Energy America LLC (BPEA), the owner of fixed platform, Polvo A, connected to the FPSO Polvo (pictured right). HRT will also claim as a 3000 HP drilling rig that operates in the field, which is located in the southeastern area of the Campos Basin, 100km offshore the state of Rio de Janeiro.
The transaction was announced in May 2013 and was approved by the Brazilian regulator in December 2013.
With its close, HRT transitions from an exploration company into a producer.
Today (January 13), BW Offshore also signed an agreement with HRT for a one year extension for the lease and operation of the FPSO Polvo. This extends the lease period to Q3 2015, with options until Q3 2022.
Brought online in 2007, the Polvo field is home to 10 producing wells in three different reservoirs, and current daily production is approximately 12,000 bbl oil. The area of Polvo license extends for 134sq. km and, HRT says, contains several prospects for future exploration.
The Polvo acquisition, is undoubtedly good news for a company that weathered downsizing, commercial disappointments and executive staff turnovers in 2013.
In July 2013, all three wells in HRT's Namibian exploration program were found to be dry. In late December 2013, following an internal conflict over board elections, six of ten board members left. Chief Executive Officer Marcio Mello resigned in May 2013 and has started arbitration against the company over the terms of his severance package. Chief Financial Officer and Investment Relations Officer Francisco Lourenco Faulhaber Bastos-Tigre was left jobless after the decision was made to merge the financial departments of HRT and HRT Oil & Gas.
HRT said that it planned to begin drilling new wells to boost production by 1H 2014.
Norway's BW Offshore signed a letter of intent with HRT in May to purchase 30% of the Brazilian company's newly-acquired stake after the close of its transaction with BP. BW owns and operates the FPSO Polvo under a firm contract until Q3 2014, with additional options until Q3 2022.
Maersk Oil Brasil Ltda holds the remaining 40% of the Polvo field.
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