Enauta Acquires Stake in Parque das Conchas

Source Company Press Release
Company Enauta Participacoes SA, QatarEnergy
Tags Country: Brazil, M&A: Asset Deal, Deals, Upstream: Upstream News
Date December 25, 2023

Enauta Participações S.A. informs that has signed a contract for the acquisition of the entire 23% stake held by QatarEnergy Brasil Ltda. in the oil fields of Abalone, Ostra and Argonauta, comprising the Parque das Conchas in the Campos Basin. The transaction amounts to a total of US$150 million, with US$15 million paid upon signing and the outstanding balance, adjusted by the period’s cash flow from the effective date of July 1st, 2023, will be paid in three installments after authorities’ approvals. Parque das Conchas is operated by Shell, with a 50% equity stake, and  ONGC holds the remaining 27%. Current production is approximately 35 thousand barrels of oil equivalent per day from 25 wells connected to chartered platform FPSO Espírito Santo. In the first half of 2023, average production was 28 thousand barrels of oil equivalent per day. The concession contracts are currently due by 2032. The transaction is aligned with Enauta’s portfolio strategy, risk-adjusted return on capital, growth optionalities and capital allocation efficiencies. Parque das Conchas has competitive lifting and development cost, shares quality and logistics properties with Atlanta’s cluster oil trading. It also employs equivalent subsea production technologies and offers potential synergies with Enauta’s planned expansion campaign for the coming years. The closing of the transaction is subject to conditions precedent, in particular the approval of Brazil’s Administrative Council for Economic Defense (CADE) and Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP), among others.

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