Tag: Perenco

Petrobras has finalized the sale of the Cherne and Bagre fields to Perenco for approximately BRL 10 million. Located in shallow waters of the Campos Basin, these fields have been idle since March 2020, when production was officially halted. The facilities remain in hibernation and the assets were originally awarded to Petrobras during ANP’s Round Zero. Both fields are positioned about 73 kilometers off the coast, at depths ranging from 108 to 150 meters.

According to Petrobras, the transfer agreement includes compensation adjustments to be paid by the company related to the asset’s integrity. The deal also creates an opportunity for production to resume under a new operator, replacing Petrobras’ earlier plan for full decommissioning. Company employees previously assigned to these assets will be relocated to other operations.

Perenco plans to restart production and reach 15,000 barrels per day from Cherne and Bagre in the medium term. When combined with the Pargo Cluster, this could increase its total output in Brazil to 35,000 barrels per day. The goal is to revitalize the fields and unlock more than 50 million barrels in reserves.

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Bagre oil fields, for a sum of $10 million—$1 million upfront and an additional $9 million upon closing. Notably, no contingent payments or adjustments have been disclosed in this transaction.

Faced with the costly prospect of decommissioning these assets, Petrobras’s decision to offload Cherne and Bagre may seem more like a strategic retreat than a loss. The Brazilian oil giant has demonstrated adeptness in shedding less-central assets, typically resulting in sustainable outcomes for both itself and the acquirers. This isn’t Perenco’s first rodeo either; following their acquisition of the Pargo, Carapeba, and Vermelho fields, they recently integrated an FSO as an alternative to the existing Garoupa infrastructure for production exports.

Initially put on the market in 2019 (Bank of America as advisors), the Garoupa cluster—which includes the now-sold fields—drew interest from industry players like Trident Energy, Premier Oil, and Perenco. However, a deal failed to materialize by mid-2020, prompting Petrobras to hibernate the fields amid fluctuating production levels, which stood at approximately 4,000 boed/d by Q4 2023. Cherne and Bagre production was ceased in March 2020.