PETROBRAS AND PPSA SIGN AGREEMENT THAT WILL RENDER R $ 210 MILLION TO THE UNION

Oct 15, 2019

Petrobras and Pre-sal Petróleo SA (PPSA) signed a document of expenses and volumes equalization for the Tartaruga shared oil field in the Campos Basin. As a result of the contract, the Union will receive about R $ 210 million from Petrobras. The funds will go into the National Treasury single account by the end of November.

The shared Tartaruga field : Tartaruga Verde and Sudoeste de Tartaruga Verde.

The Expenditure and Volume Equalization (EGV), the document’s official name, is the result of the Production Individualization Agreement (AIP) or Unitization Agreement made in the shared field.

According to PPSA, Petrobras started exploration of the area in block “BM-C-36” in 2004, under concession, and two deposits were discovered in the area, one of which extended to the southwest, to an uncontracted area, ie owned by the Union.

Whenever the limit of an oilfield exceeds the area of ​​a contract, an AIP is required. The agreement, the first of its kind by PPSA, was signed on October 31, 2014 and became effective on March 1, 2018.

In such cases, the Union, represented by the PPSA, shall be entitled to a portion of production and equivalent responsibility for expenses. In the shared field of Tartaruga, it was agreed that the Union’s share is 17.85%. A reconciliation was then made considering the revenues since the beginning of the exploration and, in the same proportion, the investments and expenses of the period.

This reconciliation resulted in a credit balance of R $ 202 million, calculated on December 16, 2018. The amount will be adjusted by the IGPM up to the Treasury credit date, which will result in approximately R $ 210 million.

Source: Valor

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