January 13, 2020
Pre-Sal Petróleo PPSA, company linked to the Ministry of Mines and Energy, raised approximately R $ 848 million for the Union in 2019. The proceeds refer to the commercialization of the Union’s oil and gas portion in production sharing contracts and Equalization. Expenditures and Volumes (EGV) of the Sapinhoá, Tartaruga Verde and Lula Sharing Contract Reservoirs.
In 2019, Pre-Sal Petróleo sold 2.6 million barrels of Union oil from the Mero (Libra) and Entorno de Sapinhoá fields, raising R$ 469 million. Also sold were 16.2 million cubic meters of gas for R$ 1 million. The result shows a growth of 47.5% in 2019 over the amount collected in 2018, with the sale of the Union’s hydrocarbons. According to the company’s CEO Eduardo Gerk, this is the beginning of an upward curve, as production of the 17 sharing contracts, of which three will be signed in March, points to continued growth in the coming years, peaking in 2032.
“In 2018, we began marketing the Union share of the production of Mero oil and Entorno Sapinhoá. In 2019, we added Sapinhoá’s oil production and Lula’s gas. We will continue marketing the production of other fields in the coming years. We conducted a study that estimates revenue for the Union of over R$10 billion per year from 2025. By 2028, the expectation is to exceed R$30 billion per year and reach 2032 with annual revenue of R$ 110 billion,” explained Gerk.
The remaining R$ 378 million collected for the Federal Government in 2019 resulted from financial reconciliations (Equalization of Expenses and Volumes) of the Production Individualization Agreements (AIP) of the Sapinhoá, Tartaruga Verde and Lula Sharing Contract Reserves. This type of agreement is signed whenever the limit of an oilfield exceeds the granted or contracted area. When this occurs in the Pre-Salt Polygon or in strategic areas, the Union, represented by PPSA, is entitled to a portion of production. In the Shared Reservoirs of Sapinhoá, Tartaruga Verde and Lula, the Union now has, respectively, a participation of 3.7%, 17.85% and 0.55%. However, the Union also has equivalent responsibility for spending. Thus, after the agreement is executed, an account is settled considering the revenues obtained from the production since the beginning of the exploration of each deposit and, in the same proportion, the investments and expenses of the period. These reconciliations resulted in a total collection of R$ 378 million.
PPSA is responsible for the management of production sharing contracts, the commercialization of all Union oil and gas production and the representation of the Union in the Production Individualization Agreements.
Source: Portos e Navios