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October 1, 2021

Petrobras receives $4bn worth bids for two concessions offshore Brazil

The bids were placed by two consortiums, one led by EIG Global Energy partners and another led by Petro Rio.

By Archana Rani

Brazil’s state-run oil firm Petrobras has received binding offers of more than $4bn from two consortiums for the Albacora and Albacora Leste oil fields offshore Brazil.

The concessions are located in the deepwaters of the Campos Basin.

One of the consortiums that offered the bids consists of Enauta, 3R Petroleum and US private equity fund EIG Global Energies. The other consortium consists of PetroRio and Spain’s Cobra Group.

In a press statement, Petrobras said: “The company is analysing them according to the evaluation criteria of this project, considering all value components and other conditions reflected in the offers, including firm and contingent payments and other relevant contractual conditions.”

Petrobras is the 100% operator of the Albacora field, located about 110km from Cabo de São Tomé, on the northern coast of Rio de Janeiro, and in water depths of 100m-1,050m.

Covering an area of 455km², the field produced an average of 23,200 barrels per day (bpd) of oil and 408,500m³ per day (m³/d) of gas in 2020.

Located in water depths of 1,000m-2,150m, the Albacora Leste field produced an average of 30,900bpd of oil and 598,000m³/d of gas last year.

The field, which is spread over an area of 511.5km² in the northern area of the Campos basin, is 90% owned by Petrobras. The remaining stake is held by Repsol Sinopec Brasil.

Petrobras’ review of the bids is ongoing and will be followed by another round of negotiations, the company said in its securities filing.

The Brazilian firm said that transaction signing will be contingent on the outcome of the negotiations, as well as the necessary approvals.

Previously, Petrobras said the sale of the two fields is part of its portfolio optimisation strategy.

With the sale, the firm also intends to improve capital allocation and concentrate on its resources in world-class assets that have less risk and greater financial return.

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