Oil and gas company Enauta has signed a purchase and sale agreement with affiliates of Westlawn Americas Offshore (WAO), which will acquire 20% participating interest in the BS-4 concession, which includes the Atlanta and Oliva fields, offshore Brazil.
WAO is a portfolio company of Westlawn Group and owns various interests in the Gulf of Mexico offshore basins.
The deal will bring $301.7 million to Enauta, which will be paid at transaction closing and subject to adjustments related to the net cash flow with investments for the delivery of Atlanta and Oliva generated between the effective date of November 1, 2023 and the transaction closing date.
As part of the transaction format, $75 million will be paid over the coming 60 days in the format of a loan to be deducted from the amount paid at closing.
The transaction also includes an option to sell a 20% stake in Atlanta Field B.V. (AFBV) for $65 million exercisable in 2024 upon agreement.
AFBV is an Enauta affiliate that holds the long-term credit receivable from Yinson associated with FPSO Atlanta, accounted for $328 million on December 31, 2023.
“We are pleased to make our first expansion into Latin America in partnership with Enauta. We share similar views of the long-term potential of the Americas and look forward to growing our relationship together elsewhere in the region,” said Greg Hebertson, COO of Enauta.
Enauta has been producing oil from the Atlanta field using the FPSO Petrojarl I as an Early Production System, and has been looking to deploy another FPSO at the field for full-field development. For this, the company, in February 2022, signed a contract with Malaysia's FPSO specialist Yinson.
Following the recent completion of the unit’s conversion, the FPSO Atlanta set sail towards its final location at the Atlanta Field in Santos Basin, offshore Brazil on March 20, 2024.
The travel time for the FPSO is estimated at 45 days, which may vary depending on sea conditions.
Once the platform arrives to its location, anchoring and submarine systems connection works will start, Enauta said.
The FPSO Atlanta has the capacity to process 50,000 barrels of oil and 140,000 barrels of water per day, and to stock 1.6 million barrels of oil.
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