PetroRio wants 100% of Frade

5/17/2019

PetroRio is eyeing the 30% share of Petrobras in the Frade field, in the Campos Basin. “We are interested and we believe that the acquisition makes sense for both sides. But as the sale still depends on the internal stages of Petrobras, we can not confirm anything at the moment, “the company’s director of operations, Roberto Monteiro, told a conference with analysts on Thursday. .

PetroRio is the operator of Frade with 70% of operation, having bought the plots of Chevron (51.74%) and Frade Japan (18.26%), in February of this year. The company prepares to prepare a field development campaign for 2020 and therefore wants to re-inject water in Frade and invest in drillships.

“We are evaluating the possibility of injecting water into the Frade field in the first half of 2020 after eight years without this kind of activity in the field. We are also talking to drilling companies with the aim of making this investment in the second half of next year, “said the COO.

Regarding the Polvo field, in the same basin, the company reported that four prospects are already aligned and prepared for new drillings, which are expected to start between the second and third quarters of this year.

Results

PetroRio reported a loss of R $ 53 million in the first quarter of 2019, against a profit of R $ 60 million in the previous quarter and of R $ 2 million in the same period of 2018.

According to Blener Mayhew, the company’s chief financial officer, the loss was driven by the $ 400 million acquisition of Frade as well as changes in the accounting rule and changes in the price of a barrel.

Net revenue in the first quarter was R $ 139 million, down 47% from the last quarter of last year and a 19% growth compared to the first three months of 2018.

PetroRio produced 30,000 boed between January and March in the assets of Frade, Polvo and Manati. The volume is 7.7% lower compared to the last quarter of last year and 15% higher compared to the first quarter of 2018.

PetroRio operates the Polvo field with a 100% stake and holds 10% slices in the Manati field and 70% in the Frade field, as well as being the operator of blocks FZA-M-254 and FZA-M-539 in the Foz do Amazonas Basin.

Source: Brazil Energy Magazine

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