KAR 1.56% $1.27 karoon energy ltd

Albacora - still in play.

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    P-50 (Source: Petrobras Agency) The delivery of binding proposals aimed at the Albacora and Albacora Leste fields, located in the deep waters of the Campos Basin, runs the risk of being postponed to the end of June / beginning of July. The final stage of the sale process for the two fields was scheduled to take place on Saturday (June 12), but the oil company must extend the deadline due to requests from interested companies. In view of the complexity of the business, some participants asked to postpone the deadline for 30 days. Petrobras is expected to extend the deadline for about two weeks. The assets are disputed by the groups Enauta / 3R Petroleum / Talos Energia / EIG Global Energy Partners – Harbor Energy, PetroRio / Cobra, and Karoon, which, after an unsuccessful attempt to participate in a consortium with Premier, would be negotiating a partnership with Trident. There are unconfirmed rumors that Total could also be in contention. Non-binding proposals were received in early February. In the first stage, all interested parties opted to submit proposals for the two assets. The market's bet is that the initial offers must have been between US$ 1.5 billion and US$ 2.5 billion. According to the teaser, each tenderer could submit up to three proposals, one for Albacora, another for Albacora Leste and a joint offer, covering both fields. The expectation is that in the new stage, some bidders will choose to offer prices only for Albacora Leste, a project with lower capex. The Albacora field is being sold entirely by Petrobras, while the Albacora Leste share is 90% offered, with the remaining 10% belonging to Repsol Sinopec. There are rumors that the value of binding offers may be lower than that of non-firm offers. Since the end of March, the companies participating in the process have analyzed the technical data of the two projects, with a focus on the subsea, wells, production units, logistics, environment and geology. In addition to the amount to be spent on acquiring the asset, the winner will have to spend at least US$1 billion in investments for production. The project will require yet another significant amount to be allocated to the abandonment campaign. The Albacora and Albacora Leste divestment package transfers the entire cost of the abandonment to the new owner of the asset. Until then, Petrobras had covered most of the amount, even if the execution was left to the new operator. The Albacora project will require a greater volume of investments. The system will require the chartering or acquisition of a new FPSO, with a capacity of between 80,000 barrels/day of oil and 120,000 barrels/day of oil, which will replace the semi-submersible P-25 and FPSO P-31, in operation in the field for more than three decades. The new FPSO is not expected to start operating until 2026. The project will require the execution of a new well drilling campaign and the replacement of some lines. Part of the Albacora reservoir is located in the pre-salt and could be exploited by the future operator. Experts claim, however, that the asset's pre-salt has very different characteristics from those of Santos, being less productive. With regard to Albacora Leste, there is no projected need to replace the FPSO P-50. Albacora and Albacora Leste produce around 61,000 barrels/day of oil. The projection is that the two fields can reach a total production of 120 thousand barrels/day to 170 thousand barrels/day of oil. The teaser for sale of Albacora and Albacora Leste was launched in September 2020, under the coordination of ScotiaBank. The estimate of Petrobras' E&P area under Roberto Castello Branco's management was that the closing of the operation would only be formalized in 2022. Albacora was discovered in 1984 and put into operation in 1987, while the Albacora Leste field was discovered two years later, in 1986, only entering into operation in 1998. The two assets together have a total of 71 wells, 46 of which are producers and 15 injectors. It is estimated that in the future dozens of wells will have to be abandoned.
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