Petrobras Ceded Its Entire Stake in the Cherne and Bagre Fields in the Campos Basin to Perenco
Brazil’s largest state-controlled oil and gas company, Petróleo Brasileiro SA (Petrobras), said it has signed contracts to cede its entire stake in the shallow-water Cherne and Bagre fields in the Campos Basin to one of the largest independent oil and gas companies, Perenco Petroleo e Gás do Brasil Ltda (Perenco).
Production at these two fields was interrupted in March 2020, and the platforms have been mothballed since then.
The amount that Petrobras will receive from the transaction is $10 million, of which $1 million will be paid up front and the remainder at closing, subject to contractual adjustments.
The transfer of these fields by Petrobras to Perenco opens up the prospect of resumption of production by a new operator, making it a more profitable alternative for Petrobras compared to the option of decommissioning the facilities and abandoning ANP’s concessions.
The deal will also allow Petrobras to focus its exploration and production investments into assets that are more consistent with the company’s strategy, which includes, among other things, the increasing decarbonization of its operations.
The Cherne and Bagre fields were initially acquired through the National Petroleum, Natural Gas and Biofuels (ANP) zero bidding round. The fields are located in the Campos Basin, 73 km off the coast of the state of Rio de Janeiro, at a water depth of 108 to 150 m. Until the cessation of production in March 2020, the Cherne and Bagre fields were produced using the PCH-1 and PCH-2 platforms , which are currently being mothballed. In May 2022, a process was initiated with ANP to reclaim the Cherne and Bagre concessions, and Petrobras began planning for the decommissioning of production facilities associated with these fields.
