Trident Energy to sell stakes in two offshore Brazil oil concessions

(U) Trident Energy expects to start looking next month for buyers of stakes in two of the 10 oil concessions it wholly acquired from Petrobras in 2020, its top boss said on Wednesday.

The UK firm has hired Brazilian bank Itaú BBA to run the competitive process, Jean-Michel Jacoulot, chief executive officer of Trident, told Upstream on Wednesday at the Rio Oil and Gas 2022 conference. He said it should commence in the next two weeks.

“We’re looking for partners,” he noted.

In 2020, Trident acquired the Pampo-Enchova cluster of mature oil fields in the Campos basin. The shallow-water fields are located 80 to 90 kilometres off the coast of Rio de Janeiro state, at a depth of 85 metres to 780 metres. It agreed to pay $1 billion. The fields were developed by Petrobras in the 1980s.

Ramping up

At that time, the firm said the shallow-water oil fields produce in excess of 22,000 barrels of oil per day.

They now produce 25,000 barrels of oil per day, according to a Trident presentation on Wednesday.

Trident is bullish on those assets, Jacoulot told conference attendees in a speech on Wednesday afternoon.

“We see activities ramping up and production increasing,” he said.

“We have big ambitions for Brazil.” 

The firm holds those concessions until 2054.

Trident, backed by private equity firms Warburg Pincus and Quantum Energy, wants to focus on the eight concessions that are more developed, Jacoulot told Upstream after his speech.

“What we really want to do is brownfield,” he said.

The company is seeking to sell parts of the Badejo and Linguado concessions, in the Pampo cluster. They lie in the Siri Reservoir. Those areas are discovered and tested but undeveloped, Jacoulot said. They hold more than one billion barrels, he believes.

Trident hopes to retain a stake in each of the two concessions but is open to how that would be done, the executive said. “We’re open in terms of how we’re going to structure the partnership.”

If another firm would bid only on the condition that it could become the operator, “it’s something we can discuss,” he said.

As for the timeline, Jacoulot said, “In principle we’d like to have some offers by the end of the year.”

Future IPO plans

Trident also expects to hold an initial public offering at some point but did not specify a timeline.

“The idea is at some stage to go public,” said Jacoulot.

He would not specify when except to say it was likely at least one year away.

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