Page 13 - LatAmOil Week 01 2023

LatAmOil NEWS IN BRIEF LatAmOil

PIPELINES & TRANSPORT
Petrobras signs natural

gas flow and processing

contract with CNOOC
subsidiary

Petrobras informs that it has signed the Inte-
grated Natural Gas Processing System (SIP)
contract with CNOOC Petroleum Brasil Ltda
(CNOOC) and, together with Petrogal Brasil,
Repsol Sinopec Brasil and Shell Brasil, partners
in the Santos Basin pre-salt offshore pipelines,
has concluded the process of CNOOC’s adhe-
sion to the existing contracts of the Santos Basin
Integrated Natural Gas Flow System (SIE-BS).
By signing these contracts, CNOOC will be binding proposals. of the entirety of Maha’s stake in its Brazilian
able to offload the natural gas coming from the The main subsequent stages of the project subsidiary was signed on December 27, 2022,
Búzios field, located in the Santos Basin pre-salt, will be informed to the market in due course. with its closing subject to customary precedent
through any of the SIE-BS export routes and This disclosure is in accordance with Petro- conditions, including approval by the Brazilian
process it in plants owned by Petrobras, making bras’ internal rules and with the special regime antitrust authority.
it possible for CNOOC to directly supply the for divestment of assets by federal mixed The total acquisition consideration can reach
natural gas market as of January 1, 2023. economy companies, provided for in Decree $174.1mn, comprised of the purchase price of
This is another step Petrobras has taken in 9,188/2017. $138mn, subject to specific adjustments and to
building an open, competitive and sustainable This operation is in line with the company’s be paid in two installments, (i) $82.8mn at the
natural gas market and is part of the set of com- strategy of portfolio optimisation and capital Closing Date and (ii) 55.2mn six months after
mitments made to the Administrative Council allocation improvement, aiming at value max- the Closing Date, and an additional $36.1mn
for Economic Defence (CADE) in July 2019. imisation and greater return to society. based on certain contractual conditions estab-
The SIE-BS is composed of Routes 1, 2 and 3 About the asset: The asset consists of the lished by Maha and PetroRecôncavo, dependent
for the outflow of the Santos Basin pre-salt Clus- onshore fibre-optic network that is approxi- on applicable earnout structure.
ter, and the SIP includes the processing plants mately 8,000 km long, covering all regions of the The Transaction with PetroRecôncavo was
connected to the SIE-BS, owned by Petrobras, country, connecting several state capitals and considered by the board of directors as advan-
located in Caraguatatuba, São Paulo, Cabiúnas, metropolitan regions. The fibre-optic network tageous and aligned with the Company’s new
and Itaboraí (under construction), both in Rio is composed of buried cables, most of which portfolio management strategy, and was driven,
de Janeiro. have a capacity of 36 optical fibres each, packed in part, by the following:
In addition to the SIE-BS, Petrobras has also in high-density polyethylene HDPE tubes Optimisation of the Company’s asset port-
shared since 2021 with the company Potiguar (bi-tube) for higher protection and maintenance folio: the Transaction will grant the necessary
E&P (a subsidiary of PetroRecôncavo) the versatility. liquidity and cash reserves to enable the Com-
Guamaré Natural Gas Flow System (SEG Gua- Petrobras, 29 December 2022 pany to pursue the optimisation of its asset
maré) and the natural gas processing plant at the allocation strategy via new investments and
UPGN Guamaré. Maha Energy announces acquisition of new assets at attractive entry
Petrobras, 27 December 2022 multiples, with a focus on creating value for its
sale of Maha Energy Brasil shareholders;
Operational Synergies with PetroRecôncavo:
INVESTMENT to PetroRecôncavo while maintaining the regular course of business
and operating Maha Brazil’s current portfolio,
Petrobras reports on sale of Maha Energy has announced the sale of Maha PetroRecôncavo will be able to generate signif-
Energy Brasil to PetroRecôncavo. The total icant synergies by leveraging their strong pres-
onshore fibre-optic network acquisition consideration is $174.1mn, with a ence in the Recôncavo basin.
According to Maha’s CEO, Paulo Thiago
purchase price of $138mn, subject to specific
Petrobras, following up on the release disclosed adjustments, plus $36.1mn to be paid upon suc- Mendonça: “This divestment is a significant step
on October 21, 2022, informs the beginning cessful achievement of earnout milestones. within the Company’s new strategic position-
of the binding phase regarding the sale of its In line with the Company’s new strategic ing, continuously focusing on generating value
onshore fibre-optic network. positioning, the board approved the divestment for shareholders. This transaction will enhance
Potential buyers qualified for this phase will of Maha’s Brazilian subsidiary (Maha Brazil) to Maha’s balance sheet and enable the Company to
receive a process letter with instructions on the PetroRecôncavo, one of the major E&P onshore pursue accretive opportunities in the O&G space
divestment process, including guidelines for players in Brazil. at attractive entry multiples, targeting stronger
conducting due diligence and for submitting The quota purchase agreement for the sale cash-flow streams and profits.”

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