Illustration; Source: Petrobras

Petrobras kicks off binding phase for Tartaruga sale

Brazilian oil company Petrobras has started the binding phase for the sale of its entire stake in the shallow water Tartaruga field, located in the Sergipe-Alagoas Basin offshore Brazil.

Illustration; Source: Petrobras

In late June, Petrobras began the opportunity disclosure stage, better known as a teaser, regarding the sale of Tartaruga – named after the Portuguese word for turtle.

Location of Tartaruga field; Source: Petrobras
Location of Tartaruga field; Source: Petrobras

The Tartaruga field is located in Area SES-107D Concession. Petrobras holds a 25 per cent stake with Maha Energy holding the remaining 75 per cent interest. Maha is also the operator of the field.

The company said in the teaser that it was looking to sell its whole stake in the field, with existing integrated facilities.

The transaction also included the option to enter into an oil purchase and sale contract with Petrobras and a gas purchase and sale contract with Maha. This kind of deal would allow the buyer to sell what it produces.

Last week, Petrobras stated that potential buyers which qualified for the binding phase would receive a process letter with detailed instructions on the divestment process, including guidelines for due diligence and the submission of binding proposals.

The company added that the transaction was in line with the portfolio optimization strategy and the improvement of Petrobras’ capital allocation and that it was increasingly concentrating its resources in deep and ultra-deep waters.

It is worth noting that, while the field is offshore, the production facilities are located onshore, producing from directional wells. The field´s average production from January to June 2020 was approximately 609.76 bpd of light oil.

Petrobras also said that there was potential to increase production with volume in place estimated at 21.63 million barrels of oil.

As for the field, Tartaruga is located on the north coast of the state of Sergipe, near the municipality of Pirambu. The field started production in 1994.