Jubarte Field Definition Increases Revenue for Espírito Santo and Eases Pressure on Petrobras

Petrobras And ANP Reach Agreement For The Unification Of The Whale Park, In The Capixaba Part Of The Campos Basin And The State Of Espírito Santo Will Have An Increase In Revenue

After five years of talks, Petrobras and ANP signed the agreement that unifies the fields of the Whale Park on Friday (04/05).
With the agreement, the Jubarte field will incorporate the other seven areas of the Whale Park, which are: Baleia Anã, Baleia Azul, Baleia Franca, Cachalote, Caxaréu, Mangangá, Pirambu, and Jubarte. From now on, the field will be called New Jubarte Field.

The agreement is important for Petrobras, as it ensures the oil company an extension of the concession period for the area for another 27 years, and equally important for the government of Espírito Santo, which will receive R$ 3.5 billion, referring to the payment of Special Participation (PE).

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The signing will take place at the state government’s palace in Vitória, and besides the state governor, Renato Casagrande, and the president of Petrobras, Roberto Castello Branco, the minister of MME, Bento Albuquerque, the director-general of ANP, Décio Oddone, and the secretary of Oil, Natural Gas and Biofuels of MME, Márcio Félix will also participate.

The Previous Conversations And Attempts

Petrobras had already declared the commerciality of the wells eight times, but in 2014, ANP determined the unification of the discoveries with the Jubarte field, resulting in an increase in the PE charge.
Petrobras, disagreeing with ANP, filed for arbitration, but the process was suspended in July 2018, and since then Petrobras and ANP opened negotiations to reach an agreement, so much so that a public hearing was held in February for discussions.

Now Petrobras holds the concession until 2056 and will be able to revive investment plans in the field, including the installation of an FPSO, which is in the bidding phase.
This FPSO will have the capacity to produce 100,000 bopd and compress 5 million m³/d of gas and is expected to start operating in 2022; currently, other units are already operating in the area.

Regarding the R$ 3.5 billion that the government of Espírito Santo is to receive from PE, Petrobras plans to pay in installments, with the first already established at R$ 1.1 billion.

ANP’s forecast is that the state will receive, with the agreement, R$ 25.8 billion in nominal values by the end of the concession in 2056.

Other cities, besides Vitória, that will also benefit from oil money are Niterói and Maricá, which have even started to save up! click here to read the article!