(Valor) 3R Petroleum released its production data for the month of October. According to the company, the consolidated average daily production of the Macau, Rio Ventura and Pescada clusters was 7,630 barrels of oil equivalent (boed). The portion referring to the participations of 3R reached a production of 6,666 boed.
The company points out that Macau cluster produced 5,419 boed in October, 3R’s share being 5,098 boed. The Pescada e Arabaiana clusters produced 989 boed, participation of 3R totaling 346 boed. The Rio Ventura cluster produced 1,222 boed, all for 3R.
In October, its portfolio suffered non-recurring effects, says the company, such as scheduled maintenance at the Natural Gas Processing Unit III (UPGN III), impacting production at Pescada; and the ongoing calibration process of the measuring stations located at the Macau and Potiguar clusters.
3R Petroleum’s chief financial and investor relations officer, Rodrigo Pizarro, stated that the company is in a position to “quickly” increase production at the Potiguar cluster to 37,000 barrels of oil per day. Pizarro recalled that this level was the average produced by Petrobras between 2009 and 2016, when the state-owned company decided to put the asset up for sale.
Currently, the asset produces around 22,000 to 23,000 barrels/day, but the director of 3R Petroleum highlighted that this decline was not natural, but motivated by the drop in investments from the moment the company decided to sell the asset.
“It’s a decline for stopping investments and certain expenses for repair,” said Pizarro, adding that the level of 37,000 barrels is not the peak production expected by 3R for Potiguar. “We intend to quickly return to these levels and, with more investments, increase production,” he added.
3R made the best offer and is in the final stages of negotiations with Petrobras to acquire Potiguar.
The company currently operates 15 fields and will soon increase to 38. Once the acquisition of Potiguar is confirmed, there will be 64 fields in five Brazilian states.
For the President of 3R, Ricardo Savini, the company has a robust portfolio, built with acquisitions in periods of low oil prices. According to him, the average acquisition cost of the company’s assets was US$ 3 per reserve barrel.
Pizarro said the company has already hedged 10% of expected future production from the Papa-Terra field between January 2022 and June 2023.
The executive also pointed out that, on average, the hedge guarantees US$ 67 per barrel.
“We decided to gradually start the Papa-Terra hedge policy to have more cash predictability,” said Pizarro.