Posted by Petrobras informed, on November 24th, that the company is already negotiating the transfer of operatorship on Papa-Terra to 3R Petroleum after a US$ 90 million offer was considered the best one. The company also stated that, at the moment, there are no deadlines set in stone for this deal.
Achieving an oil production of over 20k bbl/day for most of 2020, the deep-water Campos asset would be a significant addition to the company’s portfolio, previously focused on onshore Recôncavo and Potiguar basins.
Papa-Terra is owned by Petrobras in partnership with Chevron and has an OIP volume of 1.98 billion boe, according to the Teaser published earlier this year. The field started producing by the end of 2013 and had a peak production of over 30k boe/day on mid-2014.
The positive results of recent wells together with the high oil processing capacity of the FPSO P-63 (140,000 bbl/day) could indicate that Papa-Terra indeed has potential for the future.
What challenges do you think 3R Petroleum will face, should they successfully acquire Papa-Terra?