Petro Rio set acquire 90% of Albacora Leste

Brazil’s Petro Rio is set to acquire a 90% share in the Albacora Leste field after striking a deal worth $1.951bn with the national oil company (NOC) Petrobras.

This transaction will allow Petro Rio take control of the operation of the Albacora Leste oilfield, subject to the approval of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), as well as CADE, the Brazilian anti-trust entity. Once this milestone has been reached, Petro Rio must pay $293mn upon signing the deal in addition to $1.658bn at the time of the acquisition’s completion and the transfer of operations.

Additionally, Petro Rio may be required to make up to $250mn in additional payments, depending on the changes in the average price of Brent crude in 2023 and 2024.

Located in the north of the Campos basin off Brazil’s south-eastern coast, Albacora Leste has been in operation since 1998. The field, which is already home to 17 production wells and 15 injection wells, yielded approximately 30,000 barrels per day (bpd) in the month of March. Comprising an area of 511 square km, the field has a water depth of 1,200 metres and is expected by Petro Rio to be operational until 2050.

During its first 18 months of operation at Albacora Leste, the company will invest approximately $150mn in the P-50 floating production storage and offloading (FPSO) unit in a bid to improve the safety and operational efficiency of the field. Petro Rio will also launch a redevelopment campaign at the field involving the drilling of 17 production wells and five injection wells over the next five years.

The redevelopment plan will be divided into two phases. The first will focus on the connection of three pre-existing production wells, as well as the drilling of eight new production wells and one injection well. The second phase will involve the drilling of six production wells and four injector wells.

Works related to the final abandonment of the field, which is scheduled to take place in 2050, are expected to cost $800mn.