Petrobras starts non-binding phase of E&P assets in Alagoas

July 29, 2020

Petróleo Brasileiro S.A. – Petrobras, following up on the release disclosed on 06/17/2020, informs the beginning of the non-binding phase regarding the sale of its entire stake in a set of seven onshore and shallow water fields (Alagoas Cluster) located in the state of Alagoas.

Potential buyers qualified for this phase will receive a descriptive memorandum containing more detailed information on the referred assets, in addition to instructions on the divestment process, including guidelines for the preparation and submission of non-binding proposals.

The main subsequent stages of the project will be informed in due course to the market.

This disclosure complies with Petrobras’ divestment guidelines and is aligned with the provisions of the special procedure for assignment of rights on exploration, development and production of oil, natural gas and other fluid hydrocarbons, provided for in Decree 9,355/2018.

This transaction is in line with the strategy of portfolio optimization and improvement of the company’s capital allocation, focusing its resources increasingly on deep and ultra-deep waters, where Petrobras has shown great competitive edge over the years.

 About the Alagoas Cluster

The Alagoas Cluster comprises seven production concessions (Anambé, Arapaçu, Cidade de São Miguel dos Campos, Furado, Paru, Pilar and São Miguel dos Campos), all located in the state of Alagoas. The Paru field is located in shallow waters, with a water depth of 24 meters. The other fields are onshore.

In 2019, the cluster´s average production was 2.35 thousand bpd of oil and condensate and 856 thousand m³/d of gas, generating a total of 1,010 bpd of NGL (natural gas liquids).

In addition to the fields and their production facilities, the Natural Gas Processing Unit (UPGN) of Alagoas, whose processing capacity is 2 million cubic meters per day, is included in the transaction, and is responsible for processing 100% of the cluster gas and generating NGL.

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