Brazilian oil and gas company Enauta has come to an agreement with Dommo Energia regarding all of the ongoing legal proceedings pertaining to the Atlanta Field offshore Brazil.
This has been a long ongoing dispute dating back to 2017. At the time, Barra Energia exercised the rights to expel Dommo Energia from Block BS-4 which holds the Atlanta Field.
This was in line with the consortium’s joint operating agreement and, following an arbitration procedure, the court ruled that the rights, ownership, and working interests of Dommo in Block BS-4 be transferred to Enauta – then known as QGEP – and Barra Energia.
From 11 October 2017, each company held a 50 per cent working interest in the block. Over the last few years, Dommo has been disputing this transfer.
Enauta said that the agreement provided the extinction of all proceedings between the parties, including affiliated companies, and restricts new litigation.
“ As such, the prior transfer of Dommo’s 40 per cent working interest to Enauta and Barra Energia will no longer be subject to any legal dispute ”, the company added.
This is also important because Enauta received approval earlier this month from Brazilian authorities to take over the 50 per cent working interest in the Atlanta field held by Barra Energia and with it become the 100 per cent owner of the BS-4 block.
In December 2020, Enauta entered into an agreement with Barra Energia to acquire its working interest in Block BS-4 following Barra Energia’s previous decision to withdraw from the block .
It was also agreed that Barra Energia would transfer $43.9 million to the Enauta related to the abandonment operations of the three wells and decommissioning of existing facilities at the field.
Last month, Enauta initiated the bidding process for the FPSO for the full development system of Atlanta. The process would be completed in 10 to 12 months.
The bidding considers an FPSO with capacity to process 50 thousand barrels of oil per day, to which 6 to 8 producing wells will be connected, including the 3 wells already in operation in the early production system which started operation in May 2018 .