PetroRio buys FPSO OSX-3 from the oil company OGX and 80% of the Tubarão Martelo oil field in the Campos Basin

The interconnection between the Polvo and Tubarão Martelo oil fields in the Campos Basin will reduce costs, increase production, reserves and the economic life of both fields.

PetroRio, the largest independent oil and gas company in the country, announces today, 03, the purchase of the vessel OSX-3, for US$ 140 million (about R$ 600 million), together with the acquisition of 80% of the Campo de Tubarão Martelo – where the Oil and Gas Production Storage and Transfer (FPSO) unit is chartered. Oil giant Modec opens offshore selection process this Monday morning

Read also

• Vacancies for welders and mechanics for projects and works in an engineering company
• Heineken has more than 140 job openings for primary, secondary and higher education
• A company belonging to the Odebrecht group TODAY announces many job openings in the production and maintenance area
• Registration of resumes for Civil Firefighters and Nursing Technicians in a risk prevention company in RJ

The two transactions will allow for the integration between the Polvo oil fields, already operated by PetroRio, and Tubarão Martelo, both in the Campos Basin (RJ).

This is the first initiative by an independent company in the country to optimize mature oil fields, with the creation of a hub in the region – all oil producing wells in the two fields will be interconnected to the newly acquired FPSO (OSX-3) .

“We studied this acquisition a lot and prepared to put into practice a pioneering strategy to revitalize fields in production in Brazil. The two businesses will generate significant synergies, cost reduction, extension of the economic life of the two fields and lower emissions due to the integrated operation. We also follow our basic premises of safety and responsibility towards the environment”, emphasizes Nelson Queiroz Tanure, CEO of PetroRio.

The combined operating costs of Polvo and Tubarão Martelo, currently at more than US$ 200 million per year, should fall by approximately US$ 70 million per year, after implementing synergies with logistics and operation, in addition to the return of the FPSO currently leased to the processing and storage of oil from the Polvo field.

With this, PetroRio estimates that the production costs of the new hub could reach around US$ 15 per barrel, resulting in an expected increase in the economic life of the assets until approximately 2035 and with a positive impact on production and an increase in reserves of 40 million of barrels, totaling 52 million barrels of oil.

Tubarão Martelo currently produces around 5.800 barrels/day, but this volume could reach up to 10 barrels/day, after the completion of the current field revitalization campaign. The new hub could reach an estimated production of 20 barrels/day as of 2021.

Integration of Octopus and Hammerhead Shark

The acquisition of 80% of the Tubarão Martelo field will be shared with the assumption of 100% of the operating costs of the oil field, with the right to initially sell 80% of the oil produced.

After the interconnection of the Tubarão Martelo and Polvo oil fields, scheduled for mid-2021, PetroRio will have a 95% stake in the new integrated production hub; and Dommo (current operator), with the remaining 5%. The investment in the integration of the two assets, only 9 km apart, is expected to be between US$ 50 million and US$ 60 million.

PetroRio had the contribution of Prisma Capital, as financial advisor throughout the process, which includes funding of US$ 100 million for the project.

The operations depend on the approval of the regulatory bodies - Cade and PNA.