Oil and gas company Enauta has revealed that the Brazilian Oil, Gas and Biofuels Agency (ANP) has approved the constitution of guarantees for the company to take over a 100 per cent stake in the Atlanta field off Brazil, doubling its oil production.
Enauta said on Friday that the ANP has approved the corporate guarantee arrangement as the financial guarantee instrument for the decommissioning of the Atlanta field.
Over the next few days, the amendment to the Concession Agreement will be signed by ANP, thus concluding the transfer of 50 per cent of the rights and obligations for the exploration, development and production of oil and natural gas in the field.
After the amendment to the Concession Agreement, the company will start recognizing Atlanta’s full results in its financial statements. Enauta, which holds half of the field’s oil output, will then report the entire production, now at nearly 18,000 barrels per day, which is an all-time high volume for the company.
The field’s estimated average production for 2021 remains at 14,000 barrels of oil per day, plus or minus 10 per cent when the daily average is verified on an annual basis.
According to an announcement on 21 December 2020, the agreement entered into with Barra Energia provides for the transfer of $43.9 million to Enauta Energia, related to the future abandonment of operations for the three wells and the decommissioning of existing facilities in the field. This amount will be received upon signing of the amendment to the Concession Agreement.
To remind, Enauta last December entered into an agreement with Barra Energia to acquire its working interest in Block BS-4, where the Atlanta field is located, following Barra Energia’s previous decision to withdraw from the block.
The transfer was subject to approval by the National Agency for Petroleum, Natural Gas and Biofuels (ANP) and Brazil’s Antitrust Agency (CADE), and to additional usual conditions.
Furthermore, the definitive conclusion of the transfer was conditional upon settling the warranties and signature of the addendum to the Concession Agreement.
Décio Oddone , Enauta’s CEO, commented: “Upon conclusion of the transfer of Atlanta field, we are taking another important step towards increasing the company’s cash generation. We will soon have three producing wells, which will enable us to meet the demand for Atlanta oil under a benign price environment.
“In addition, we are actively pursuing the implementation of the Full Development System in order to maintain our production and cash generation at higher levels for a long period”.
Enauta has already initiated the bidding process for the FPSO for the Full Development System (FDS) of the Atlanta field.
The bidding considers an FPSO with the 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 (EPS).