Page 11 - LatAmOil Week 19 2022

LatAmOil BRAZIL LatAmOil

They also told US officials that Petrobras did not Petrobras, meanwhile, said in a statement
have the logistical wherewithal to boost oil out- viewed by Reuters that it had not met with “rep-
put temporarily, even though it aimed to raise resentatives of the US State Department.”
yields by 500,000 barrels per day (bpd) by 2026 When asked for clarification, the NOC
as part of its medium-term plan, the sources declined to say whether it had had any contact
said. with officials from another US government
As of press time, neither the US government agency.
nor Petrobras had officially confirmed that the Brazil’s Mines and Energy Minister Bento
meeting took place. Albuquerque had told Reuters in April that he
A spokesperson for the US State Department met twice with US Energy Secretary Jennifer
revealed little in a statement sent to Reuters. “We Granholm to discuss his country’s role in stabi-
are ... doing everything possible with our allies lising the global crude oil market.
and partners to mitigate the economic impacts He did not reveal many details of those talks,
of Russian actions on other economies like Bra- but he had commented in late March that he
zil,” she said. “We are working with energy com- expected Brazilian oil producers to ramp up
panies to surge their capacity to supply energy to production to some extent to take advantage of
the market, particularly as prices increase.” rising prices. ™

Petro Rio set to acquire 90%

stake in Albacora Leste field

BRAZIL’S Petro Rio is set to acquire a 90% share
in the Albacora Leste field after striking a deal
worth $1.951bn with the national oil company
(NOC) Petrobras.
This transaction will allow Petro Rio take
control of the operation of the Albacora Leste
oilfield, subject to the approval of the National
Agency of Petroleum, Natural Gas and Biofuels
(ANP), as well as CADE, the Brazilian anti-trust
entity. Once this milestone has been reached,
Petro Rio must pay $293mn upon signing the
deal in addition to $1.658bn at the time of the
acquisition’s completion and the transfer of
operations.
Additionally, Petro Rio may be required to
make up to $250mn in additional payments,
depending on the changes in the average price
of Brent crude in 2023 and 2024.
Located in the north of the Campos basin off
Brazil’s south-eastern coast, Albacora Leste has
been in operation since 1998. The field, which
is already home to 17 production wells and 15
injection wells, yielded about 30,000 barrels per
day (bpd) in the month of March. Comprising
an area of 511 square km, the field has a water
depth of 1,200 metres and is expected by Petro
Rio to be operational until 2050. The Albacora Leste oilfield is in the Campos basin (Image: Petrobras)
During its first 18 months of operation at
Albacora Leste, the company will invest approx- two phases. The first will focus on the connec-
imately $150mn in the P-50 floating production tion of three pre-existing production wells,
storage and offloading (FPSO) unit in a bid to as well as the drilling of eight new production
improve the safety and operational efficiency of wells and one injection well. The second phase
the field. Petro Rio will also launch a redevelop- will involve the drilling of six production wells
ment campaign at the field involving the drilling and four injector wells.
of 17 production wells and five injection wells Works related to the final abandonment of
over the next five years. the field, which is scheduled to take place in
The redevelopment plan will be divided into 2050, are expected to cost $800mn. ™

Week 19 12•May•2022 www. NEWSBASE .com P11