PetroRio among the largest producers in Brazil

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1/31/19

With the acquisition of Chevron’s subsidiaries in the Frade field, PetroRio will increase its production in Brazil by more than 60%, reaching almost 30 thousand boed. In the ranking of the concessionaires, the company should jump to the seventh position, behind Petrobras and big multinationals like Shell, Petrogal, Repsol, Equinor Energy and Equinor Brasil.

Today, PetroRio’s production is mostly from the Campo de Polvo (about 10 thousand bopd). In Frade, the volume is approximately 4,000 bopd, corresponding to the 18.26% stake held by Frade Japan, which was acquired by the Brazilian oil company last year.

The remainder of PetroRio’s current production (as operator and / or concessionaire) comes from the Manati field, where it holds a 10% stake through Brasoil (3,345 thousand bopd).

By buying Chevron Brasil and Chevron Frade, as announced on Wednesday (30/1), PetroRio will hold 70% of Frade, which will yield a total production of 15 thousand bopd in the field. The agreement also includes the operation of 50% of the block CE-M715, in deep waters of the Ceará Basin.

In a statement, PetroRio pointed out that the deal will raise the company’s 2P (proven most probable) reserves to 83.6 million bopd.

 

The latest operating results released by PetroRio show an improvement compared to the previous year, with net revenue of R $ 224.6 million – more than double the 3Q17 – and adjusted EBITDA of R $ 107.1 million, the highest ever recorded . The numbers indicate that the company is in the throes of expanding its activities.

Chevron

It was in the field of Frade that Chevron went through its most delicate moment in the country, due to the leakage of 3,700 barrels in November 2011. Last year the company already showed signs that the asset would no longer be one priority, when it shelved its redevelopment project, scheduled for this year and which envisaged the construction of six wells in the field.

The sale of Frade to PetroRio signals the direction of its production focusing on ultra-deepwater areas in the pre-salt layer. In 2018, Chevron acquired areas with great exploratory potential in the production-sharing auctions: Três Marias (4th round), where it owns 30% as operator, and Saturno (5th round), with 50%, Shell being the operator.

Also last year the company purchased the S-M-764 block, in the Santos Basin, during the 15th round of the ANP. In addition, Chevron has a 40% stake in three more blocks in the Campos Basin (C-M-791, C-M-821 and C-M-823).

Source: Brasil Energia

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