Brazilian oil and gas company PetroRio has closed the acquisition of subsidiary Chevron, which holds a 51,74% stake in the concession and operation of the offshore Frade field in Brazil, along with a proportional stake in the field's operating assets.

As reported in late January 2019, PetroRio entered into a share purchase agreement for Chevron's stake in the offshore Frade field in Brazil, in a deal reportedly worth half a billion dollars. PetroRio informed on Monday that the conditions for the acquisition of Chevron Brasil Upstream Frade Ltda. have been met and the necessary approvals have been granted.

The company is now also the operator of the field, conferring influence on the consortium's decisions and allowing the implementation of cost reduction measures and synergies in its operations.

The company said: “The acquisition represents the completion of another successful step in the execution of PetroRio's growth strategy, through the acquisition and redevelopment of production fields. With this transaction, PetroRio's production will increase by 11 barrels per day and 43 million barrels of oil will be added to 2P reserves. ”

redevelopment plans

PetroRio estimates that the acquisition will allow significant opportunities for cost reduction initiatives through operational synergies on land, air and sea, and the company will plan the redevelopment of Frade, which may include drilling campaigns and water injections to be determined with the help of the Geology, Reservoir and Well Engineering teams. As such, the company expects to replicate the success at the Polvo field and extend the economic life of the field by over 10 years.

With this acquisition, the company also inaugurates its participation in the Brazilian pre-salt, with the possible exploration of prospects similar to the discovery in the Roncador field, at a depth of 4500 meters, which may be part of new drilling initiatives planned for 2020. .

The transaction includes a 50% operating stake in the deepwater CE-M715 block, a new frontier with oil potential in a region where international players have recently announced investments.

PetroRio also noted that the acquisition of the 18,26% stake in Frade Japan, a joint venture formed by Inpex and Sojitz, is still subject to precedent conditions and internal and external approvals for its completion. The remaining 30% stake in the field is owned by Petrobras.