Brazil’s Dommo Energia SA said it agreed to a farm out agreement with PetroRio, which will see the later take an 80 per cent stake in the Tubarão Martelo oil field, along with acquiring the field’s floating oil and gas platform type FPSO OSX-3 for $140 million.
The platform belonged to OSX3 Leasing, Dommo said in a statement.
The two transactions will allow the integration by PetroRio of the Polvo and Tubarão Martelo fields, both located in the Campos Basin.
The Polvo Field, 100 per cent owned by PetroRio, has a production platform (WHP-A), located approximately 9 km from OSX-3 FPSO. The companies will carry out a project to link the WHP-A to the OSX-3 FPSO (Tieback), which is expected to take place in mid-2021, allowing the production of oil from both fields in a single FPSO.
“The two deals with generate significant synergies, the reduction of costs, the extension of the commercial lifespan of the two fields and lower emissions,” said PetroRio CEO Nelson Tanure said in a statement.
Production costs could fall to $15 per barrel with the integration of the two fields, extending their life span until 2035 and increasing reserves to 52 million barrels.
“Tubarão Martelo currently produces about 5,800 bpd, and that could reach 10,000 bpd after we conclude the revitalisation of the field, while output of the integrated fields could reach an estimated 20,000 bpd as of 2021,” Tanure said.