Brazil's PetroRio SA and Australia's Karoon Energy Ltd are among the bidders for a shallow water Petrobras oil field, according to two sources who wish to remain anonymous. These assets offered for sale are part of an ambitious divestment program by the state-owned company
With an oil production of around 34.000 barrels per day, the Bauna field in Brazil's Santos Basin is among the largest mature production assets in Petrobras' $26,9 billion divestment portfolio. While the sources did not reveal a potential amount, PetroRio had previously made a bid of around US$500 million for Bauna in 2016, which turned out to be unsuccessful.. LCOc1 CLc1 oil prices have increased moderately since then.
The slightly more productive Pampo and Enchova clusters in the adjacent Campos Basin, which are being sold together, were considered bids worth around $1 billion in June.
Karoon and Petrobras declined to comment. PetroRio did not respond to a request for comment.
One of the sources said that other bidders were involved in the auction that closed at the end of last year, and it was possible that neither PetroRio nor Karoon would emerge as the winner of the concession expected to last until 2040. Petrobras could enter into exclusive negotiations with a of companies. bidders in a matter of weeks, the sources said.
This is the second time that PetroRio and Karoon try to buy Bauna.
Karoon entered into exclusive negotiations in 2016 to buy Bauna, as well as the Tartaruga Verde field, which it recently started producing, although that process was canceled following a court injunction.
Karoon at that point won PetroRio's $500 million bid, which was aimed strictly at Bauna.
For PetroRio, the asset fits well with the independent oil company's strategy of acquiring stakes in mature oil fields to increase its productivity.
For Karoon, which said it remains interested in Bauna, the asset would present significant synergies with nearby Kangaroo and Echidna oil discoveries.
Petrobras is withooring its participation in shallow waters and mature fields to refocus its efforts on the promising pre-salt game in deep waters of Brasil.
There is some legal uncertainty hanging over the Bauna divestiture. In December, a Supreme Court judge suspended Petrobras' sales of exploration and production assets, but the company later said it believed the decision only applied to lawsuits initiated in May or later.
