Cade approves PetroRio farm-in in Frade

PetroRio is now awaiting internal and external approvals to complete the acquisition of the share of Frade Japan in the field

The Administrative Council for Economic Defense (Cade) has approved the purchase of Chevron’s stake by PetroRio in the Frade field in the Campos Basin. As a result, the Brazilian became the operator of the field with 51.74% participation, in consortium with Petrobras (30%) and Frade Japan (18.26%).

Announced by the companies at the end of January, the transaction was finalized last Monday.  PetroRio now awaits internal and external approvals to complete the acquisition of the share of Frade Japan assets.

The company plans to increase the field life in more than 10 years through the development plan for the area and plans to reduce costs through operational ground, air and marine synergies.

In addition to Frade, the agreement with Chevron included the purchase of a 50% stake in the block CE-M-715 in deep waters in the Ceará Basin.

Other farm-ins

The operation between PetroRio and Chevron is one of several farm-ins registered in the Brazilian oil sector in recent years. One of the highlights was the purchase of 66% of the block BM-S-8, where is located the field of Carcará by Equinor, for $ 2.5 billion, in 2017.

The following year, the Norwegians acquired a 25% stake in Petrobras in the Roncador field, in the Campos Basin.

Also in 2018, France’s Total bought a 45% stake in the Lapa field in the Santos Basin, becoming the operator of the asset. The operation included assignment of Petrobras rights in the Iara field.

In December, Ecopetrol entered into an agreement with Shell and Chevron to purchase a 10% stake in the Saturno block, the area sold off in the 5th round of production sharing.

This month, BW Offshore has entered into agreements with Petrobras and Chevron to acquire their respective holdings in the Maromba field, in the Campos Basin.

By the end of this quarter, Australian Karoon intends to complete the negotiations for the acquisition of 40% of Sinochem in the Peregrino field, in the Campos Basin.

Source: BE Petroleum

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