TRANSACTION CONTEMPLATES THE TRANSFER OF 9 EXPLORATION AND PRODUCTION CONCESSIONS
On February 24TH 2020, PetroReconcavo, through its subsidiary SPE Miranga S.A., signed the contract for the acquisition of the rights of exploration and production for nine onshore concessions located in the Recôncavo Basin, in Bahia.
The so called Miranga Cluster consists of nine fields located in regions close to PetroReconcavo’s operations in Bahia. Among these fields, Miranga stands out, which has the fourth largest accumulated oil production and the third largest accumulated natural gas production among Brazilian onshore fields (ANP1, June 2020). This acquisition is in line with PetroReconcavo’s strategy of operating assets that still have recoverable reserves, while expanding the representation of Natural Gas in its production and reserves portfolio.
After the conclusion of the transaction, PetroReconcavo will become the concessionaire and operator of all nine fieles of the Miranga Cluster, which comprises the concessions of Apraius, Biriba, Fazenda Onça, Jacuípe, Miranga, Miranga Norte, Riacho São Pedro, Rio Pipiri and Sussuarana. The average production of the Miranga Cluster from January to December 2020 was approximately 900 barrels of oil per day (bopd) and 377 thousand m³/day of natural gas.
PetroReconcavo entered into an agreement with Companhia de Gás da Bahia – Bahiagás (“Agreement”), the natural gas distributor of the state of Bahia, within the context of the revitalization program of this Cluster. Under the Agreement, all natural gas produced and processed in the fields of the Miranga Cluster will be sold through a contract to be signed with Bahiagás. The precedent of the Agreement is the completion of the acquisition of Miranga Cluster and the construction, by both parties, of the necessary infrastructure for the interconnection between the production and distribution systems.
The value of the transaction for the purchase of exploration and production rights for the Miranga Cluster is US$ 220.1 million, of which US $ 11 million is paid upon signature; US$ 44 million at the close of the transaction, US$ 60.1 million in other firm payments under the contract and US $ 85.0 million in contingent payments under the contract.
The conclusion of the deal still depends on the approval of ANP.
PetroReconcavo’s Acquisitions
1. April 2019 – won the 34 fields of the Riacho da Forquilha Cluster, in the Potiguar Basin, Rio Grande do Norte.
2. December 2020 – won the 12 fields that are part of Remanso Cluster, in the Recôncavo Basin, in Bahia.
3. In the permanent offer of the ANP, also in December last year, it won the exploratory blocks POT-T-702.
4. February 2021 – signed a contract for the acquisition of exploration and production rights for the Miranga Cluster, in the Recôncavo Basin, Bahia.