PetroRio acquires stake in two Campos Basin offshore blocks from BP

20 November 2020 (Last Updated November 20th, 2020 13:02)

Brazilian oil and natural gas exploration and development (E&P) firm PetroRio has acquired a stake in two pre-salt offshore blocks in Brazil's Campos Basin from oil major BP.

PetroRio acquires stake in two Campos Basin offshore blocks from BP
Petro Rio would acquire 35.7% interest in the BM-C-30 Block and 60% in the BM-C-32 Block. Credit: AdmiralFox from Pixabay.

Brazilian oil and natural gas exploration and development (E&P) firm PetroRio has acquired a stake in two pre-salt offshore blocks in Brazil’s Campos Basin from oil major BP.

Petro Rio would acquire a 35.7% interest in the BM-C-30 Block comprising the Wahoo discovery, and 60% in the BM-C-32 Block, containing the Itaipu discovery.

Following the completion of the deal, PetroRio becomes the operator of the two pre-salt fields.

PetroRio’s stake acquisition in the two blocks will have a fixed portion of $100m, which will be paid in five instalments between the signing and the completion of the deal.

The acquisition also includes a $40m earn-out contingent on Itaipu’s first oil.

In a press statement, PetroRio stated: “PetroRio reaffirms its commitment to maintaining conservative indebtedness levels, and estimates that even after incorporating this financing, the Net Debt/EBITDA ratio will remain within normal and acceptable ranges.”

Wahoo is located 30km-35km north of Frade, in water depths of 1,400m, while Itaipu is located close to the Whales Park cluster.

Wahoo discovered oil in 2008. Formation tests at the field were carried in 2010.

Under the Wahoo base project, four producer wells will be drilled. The base project also covers the drilling of two injector wells, the deployment of a subsea manifold with multiphase pumps for the flow of oil and injected water, as well as the tieback between the manifold and the Frade floating production storage and offloading (FPSO).

Discovered in 2009, Itaipu has three pilot wells drilled.

PetroRio noted that the development of Whales Park cluster area might ‘go through a unitisation process before any development definition’.

In March 2013, BP completed the flow test of the Itaipu-1A discovery well.

Earlier this month, PetroRio signed binding documents with Gas Bridge to sell its 10% interest in the Petrobras-operated Manati gas field located offshore Brazil.