PetroRio to Increase Life of Frade

2/8/19/19

PetroRio to pay US $ 400 million for Frade

PetroRio wants to increase the field life in more than ten years with new drilling and water injection campaigns

The acquisition of Chevron’s 51.74% stake at the Frade field will cost about $ 400 million, the company said on Wednesday. The oil company will pay US $ 184 million, adjusted for 70% stake and operation, and another US $ 225 million over the next 24 months.

The completion of the business is still subject to value adjustments and verification of previous conditions and internal and external approvals.

PetroRio also reported that there is currently no negotiation, proposal or binding document in relation to the remaining 30% of the Frade field, held by Petrobras.

Increase in production and reserves

PetroRio’s production at Campo de Frade will increase to 15,000 boepd, contributing to total production reaching approximately 28,000 boepd and equivalent oil reserves, 84 million barrels 2P (proven more probable).

The oil company plans to develop a redevelopment plan for the Frade field, which will include drilling and water injection campaigns. With the redevelopment project, PetroRio intends to extend the field life in more than ten years.

Still according to the company, the acquisition of the asset will provide cost reduction through operational synergies on the ground, air and sea.

Source: Brazil Energy Magazine

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