Brazilian oil and gas player Enauta has signed a contract with QatarEnergy Brasil for the acquisition of a stake in oil fields located in the Campos Basin for $150 million.
Enauta reported that it was set to acquire the entire 23% stake held by QatarEnergy Brasil in the oil fields of Abalone, Ostra and Argonauta, comprising the Parque das Conchas.
Parque das Conchas is operated by Shell, with a 50% equity stake, and ONGC holds the remaining 27%. Current production is approximately 35 thousand barrels of oil equivalent per day from 25 wells connected to chartered platform FPSO Espírito Santo.
In the first half of 2023, average production was 28 thousand barrels of oil equivalent per day. The concession contracts are currently due by 2032.
The transaction amounts to a total of $150 million, with $15 million paid upon signing and the outstanding balance, adjusted by the period’s cash flow from the effective date of July 1, 2023, will be paid in three installments after authorities’ approvals.
The closing of the transaction is subject to conditions precedent, in particular the approval of Brazil’s Administrative Council for Economic Defense (CADE) and Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP), among others.
Enauta said that the the transaction is aligned with its portfolio strategy, risk-adjusted return on capital, growth optionalities and capital allocation efficiencies.
According to the company, Parque das Conchas has competitive lifting and development cost, shares quality and logistics properties with Atlanta’s cluster oil trading, and also employs equivalent subsea production technologies and offers potential synergies with its planned expansion campaign for the coming years.
The news comes shortly after Enauta signed a contract with Brazilian giant Petrobras for the acquisition of oil and gas fields in the Santos Basin and natural gas pipeline infrastructure.
Enauta also recently reported that it had signed a contract to acquire the FPSO Cidade de Santos platform operating in the Uruguá and Tambaú fields.