Petro Rio, through its subsidiary Petro Rio Jaguar Petróleo, has agreed to acquire a 90% stake in the Albacora Leste field, offshore Brazil, for $2.2bn from Petrobras.

Repsol Sinopec Brasil owns the remaining 10% stake in the field, which is producing hydrocarbons via the P-50 floating production, storage, and offloading (FPSO) vessel.

As per the terms of the deal, Petro Rio will make a $293m payment to Petrobras upon signing the agreement.

Brazil’s Petro Rio will also make an additional $1.66bn payment after the closure of the deal and transfer of the operation to the company.

The deal also includes contingent payments of up to $250m by Petro Rio. This will be based on annual average Brent prices for the years 2023 and 2024.

In a press statement, Petrobras said: “This transaction is in line with the company’s portfolio management strategy and the improved allocation of its capital, aiming to maximise value and provide greater return to society.”

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By GlobalData

The deal is subject to preceding conditions including clearance from the Brazilian antitrust entity (CADE), approval from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), and a waiver of the preemptive rights by Repsol Sinopec Brasil within 30 days.

Petro Rio said that it will make a $150m investment in the P-50 FPSO to boost its safety and operational efficiency.

Petro Rio also plans to undertake a redevelopment campaign at the Albacora Leste field.

The two-phased campaign will involve connecting or drilling 17 production wells, and five injection wells, over a period of five years.

The Brazilian firm will also perform the early decommissioning of five producing wells, and an injector well.

Located in the north of the Campos basin, 23km from the Frade Field, the Albacora Leste field produces via 17 production wells and 15 injection wells.

In 2018, Aker Solutions was awarded a maintenance and modifications services contract for three Petrobras-operated platforms at Brazilian offshore oil and gas fields.