Brazil’s Enauta cuts investment in Atlanta, may sell stake

(Reuters) – Brazilian oil firm Enauta (ENAT3.SA) has cut investment in the Santos basin’s Atlanta field, as it decides whether to involve new partners in the asset, the company’s president, Décio Oddone, told Reuters.

After a review of the project’s concept, based on lessons learned, the company estimates investments of between $500 million to $600 million, compared with original estimates of $800 million to $1 billion. The lower range takes into account the need for fewer wells, amongst other issues, Oddone said late on Monday.

The final investment estimate will depend on the conclusion of the contracting of equipment and suppliers for the project.

Enauta’s main oil production asset in December produced about 13 thousand barrels of oil per day (bpd). The asset has three wells and a fourth is planned for later this year.

Enauta is seeking a partner for Atlanta, which is in the binding phase of negotiation.

Oddone avoided giving details, but said there is a “short list” of companies that could get involved in the project, and the decision of whether to sell a stake will be made in the first quarter.

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