September 12, 2019
Petrobras formulates sales models for the pre-salt pipelines with partners, scheduling operation for 2020
Petrobras is preparing an unprecedented operation to reduce its stake in the Route 1, Route 2 and Route 3 pipelines, which are responsible for interconnecting the Santos cluster fields to the coast of Rio de Janeiro and São Paulo. The modeling is being developed jointly with Shell, Repsol and Galp – partners in some of the networks – aiming for a public offering (IPO).
According to sources participating in the negotiations, the formatting of the operation is already at an advanced stage of conception, leaving only some details to correct. It is expected that the oil companies will create, in early 2020, a company with a portfolio formed exclusively by the three offshore pipelines and which will have part of its capital open to the market by the end of next year.
The proposal is to open a sufficient percentage to attract stakeholders and ensure that the new company has private control.
Petrobras holds a 100% stake in the first stretch of Route 1, which links the Mexilhão field to the coast. In the second stage, which connects Mexilhão to Lula, the company’s share is 65%, 25% Shell and 10% Galp. In Route 2, the holdings are divided as follows: Petrobras with 55%; Shell with 25%; Repsol (10%); and Galp (10%). The Brazilian oil company owns 100% of Route 3.
The IPO will be focused exclusively on the participation of Petrobras. The operation has been conducted within the divestment plan, also aligned with the oil company commitment to reduce its participation in the gas market.
There is no definition as yet if the sale will be directed to new companies or if the current partners can participate in the operation. On the partner side, there is apparently an interest in expanding their stakes in the three routes.
Route 1 and Route 2 are already in operation – the first since 2011 and the second since 2016. Scheduled to go into operation in 2021, Route 3 has already launched the shallow and deep water section and now passes through installation phase in ultra-shallow waters with McDermott, and onshore with the Encalso-Concremat consortium.
Together, the three routes have a flow capacity of 44 million m³ / d of gas over a 1,096 km long network.
Route 1 has 359 km and its end point is the Monteiro Lobato Gas Treatment Unit in Caraguatatuba (SP), while Route 2 has 382 km and ensures the arrival of gas to the Cabiúnas Gas Treatment Unit in Macaé (RJ). Route 3 will have a total length of 355 km (307 km offshore and 48 km onshore) ending at Comperj in Itaboraí (RJ).
Source: BE Oil