Enauta closes purchase of existing FPSO, making room for first oil in 2024

Brazilian oil and gas company Enauta has concluded the purchase of an FPSO for the Definitive System of its operated Atlanta field located off Brazil.

OSX-2 FPSO; Copyright SBM Offshore

Following a letter of intent from December 2021, Enauta entered into an agreement with Yinson to buy the FPSO OSX-2 in January 2022. The agreement was contingent on compliance with the agreed contractual conditions.

Enauta announced on Wednesday it had concluded the purchase of the FPSO OSX-2 for Atlanta for $80 million and the payment has already been fully made.

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Décio Oddone, CEO of Enauta, commented: “The acquisition of an existing unit at an attractive price substantially improves the expected return for Atlanta, in addition to optimizing the time required for the implementation of the Definitive System, allowing, in the event of project sanction, the first oil in mid-2024.

Oddone further added that this term, together with the extension of the Petrojarl I contract, allows for the continuity of production during the transition from the Early Production System to the Definitive System.

Located in the Santos Basin, the Atlanta field is operated by Enauta Energia, a wholly-owned subsidiary of the company, which also has a 100 per cent interest in this asset. The field is producing since 2018 through an Early Production System (EPS) – comprising three wells connected to the FPSO Petrojarl I.

Enauta in January 2022 signed agreements with Altera to extend the charter, operation, and maintenance of Petrojarl I FPSO for the EPS of the Atlanta field. The agreements have an additional duration of up to two years, and their expiration was extended from May 2023 to May 2025. The extension was contingent upon the issue of the DNV Certificate before the expiration of the current agreement.

Also this week, Enauta signed a drilling rig contract for operations on the Atlanta field, under which the Alpha Star rig had been contracted to execute the drilling of the Atlanta field’s fourth well of the EPS.

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Subject to board approval, the agreement can be renewed for another 150 days for drilling operations of the other two producing wells and lines relocation.

Yinson firmed up another FPSO deal this week, this one with Petrobras for the chartering and provision of FPSO services for the Parque das Baleias Integrated Project, to be installed in the Jubarte field offshore Brazil. The estimated aggregate value of the contracts is $5.2 billion and the FPSO is expected to start operation by the fourth quarter of 2024.