The board of Petrobras has approved an agreement with the Brazilian Government for the potential sale of excess reserves from the Sepia and Atapu offshore oil fields.

Under the agreement, Petrobras will receive compensation in the event of a bid for the transfer of rights for surplus volumes in the two fields.

Upon auctioning the surplus volumes in the Atapu field, Petrobras will receive $3.253bn. The firm will also receive $3.2bn if excess reserves from the Sepia filed are auctioned.

In 2010, the Brazilian firm signed the transfer of rights agreement with the federal government with options to exercise exploration and production activities in the areas of Sépia and Atapu.

Although the government tried and failed to sell off reserves in the Atapu and Sepia fields in 2019, officials are considering retrying the sale.

Petrobras said that it is eligible for compensation as it has already completed exploration and development work in the two blocks.

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By GlobalData

In a press statement, the firm said: “The amounts of the net and firm compensations will be increased by supplements (earn-outs), due between 2022 and 2032, which will be payable as of the last business day of January of the year subsequent to the year in which the price of Brent oil reaches an annual average of over $40/bbl, limited to $70/bbl (the earn-out tables will be disclosed by the Ministry of Mines and Energy, after approval of the agreement by the minister).”

The Sepia ultra-deepwater field and the Atapu deepwater oil and natural gas field are located in the Santos basin pre-salt, off the coast of Brazil.

Last month, Petrobras said it commenced the binding phase for the sale of the Albacora and Albacora Leste concessions located in the Campos Basin offshore Brazil.