Production Sharing Contracts Signed for Sepia, Atapu Offshore Oil Fields in Brazil

OE Staff
Thursday, April 28, 2022

Brazilian oil and gas company Petrobras has signed production sharing contracts with its partners for the Atapu and Sépia oil fields, offshore Brazil.

For Atapu, the PSCs were signed with Shell (25%) and Total Energies (22,5%). For Sépia, PSCs were signed with TotalEnergies (28%), Petronas Petronas (21%) and QatarEnergy (QP - 21%).

"By signing these contracts, Petrobras ensures the maintenance of the operation in these fields, located in ultra-deep waters of the Santos Basin, and confirms its leadership position in the Brazilian pre-salt, consistent with its strategy of focusing on the exploration and production of assets in deep and ultra-deep waters," Petrobras said.

Atapu is a pre-salt oil field in the Santos Basin located in waters depths of about 2,000 meters. Production started in 2020 through the P-70 Floating, Production, Storage, and Offloading unit (FPSO) which has the capacity to produce 150,000 barrels of oil equivalent (boe) per day.

Shell paid $ 1.1 billion to Petrobras for the stake in Atapu, with TotalEnergies paying $946,7 million.

"With the contract now signed, Shell will start receiving its additional share of oil from the field," Shell said Thursday.

"This transaction is the latest proof point of our commitment to further strengthening our advantaged deep-water positions in Brazil,” said Zoe Yujnovich, Shell Upstream Director. “With a leading global deep-water portfolio, this stake in the Atapu field directly supports our Powering Progress strategy to deliver the stable, secure energy resources the world needs today while investing in the energy of the future.”

For the Sepia field, Petrobras received on Wednesday the amount of R$14.55 billion (around $2.9 billion) from TotalEnergies, Petronas, and Qatar Energy, related to the 70% stake of these companies in the Sépia compensation.

Similarly to Atapu, the Sépia was block acquired by the consortium comprised of Petrobras (30%), TotalEnergies (28%), Petronas (21%) and QP (21%) in the 2nd Bidding Round for the Transfer of Rights Surplus under the Production Sharing Regime, December 17, 2021.

Sépia is a pre-salt oil field in the Santos Basin, located in water depths about 2,000 meters off the coast of Rio de Janerio. Production from the field started in August 2021 through a dedicated 180,000 bpd floating production, storage and offloading unit (FPSO).

Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, President and CEO of QatarEnergy, said: "We are delighted to reach this important milestone and close Sepia’s key definitive agreements. We look forward to working with our partners Petrobras, TotalEnergies, and Petronas to progress the next phase of development. I would like to express my sincere thanks and gratitude to His Excellency Mr. Bento Albuquerque, the Minister of Mines and Energy of Brazil, for his support and to all teams form our consortium partners for their hard work and dedication over the past few months, which allowed us to celebrate this important landmark of the start of a new long-term partnership."


Categories: Energy Deepwater FPSO Production South America

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