Investment firm 3R Petroleum is set to acquire the Potiguar Complex, a collection of oil fields in Brazil’s Potiguar Basin, from Petrobras. The deal, which has been approved by the National Agency for Petroleum, Natural Gas and Biofuels, sees Petrobras’ stake in the Potiguar transferred to 3R subsidiary 3R Potiguar for a total of $1.098bn. $235m of that payment will be divided into four annual installments, with the first due in March 2024. 3R will take control of the Potiguar Complex from June 2023.
Additional piece:
The prospect of significant and renewable sources of energy is a growing area of importance around the world. Biofuels such as corn ethanol, soybean diesel and sugarcane ethanol, as well as other plant-based and waste-fed fuels, are gaining traction as viable ways to meet emissions-reductions goals. In contrast, oil and gas markets worldwide are experiencing conflicts between their profitability versus environmental and climate concerns.
Brazil is unique in the energy space because of the abundance of resources it has – it is the world’s ninth-largest energy producer overall and among the top ten presalt producers. The country also has the largest share of biofuels in its mix of any major economy, and it is ‘well-poised’ to harness its domestic resources to become a renewables leader, according to a report by the International Energy Agency.
3R Petroleum’s investment in the Potiguar Complex is part of Brazil’s shift in focus toward sustainable and climate-friendly energy and away from oil and gas. Brazil has announced a range of targets to reduce greenhouse gas emissions and transition to a more sustainable energy mix by gradually increasing renewable sources until 2030.
While this move away from oil and gas is globally commendable, its flipside is that it will put more pressure on oil-rich countries by adding to the oversupply of traditional fossil fuels. This investment in renewable energy is undoubtedly challenging oil and gas industries to evolve and adapt to the new energy landscape. The juggling of these two fields of energy production is a fine art, and only time will tell whether the transition to renewable energy sources will be as smooth as hoped.
Summary:
Investment firm 3R Petroleum has acquired Petrobras’ stake in Brazil’s Potiguar Complex for $1.098bn to take control of the asset from June 2023. The sale involves the transfer of the concession contracts for 22 oil and gas fields as well as infrastructure and pipeline systems supporting the operation and transfer of all facilities of the Guamaré Industrial Asset, which includes the natural gas processing units, Clara Camarão refinery, and Guamaré Waterway Terminal. Brazil is working on a shift toward sustainable and climate-friendly energy by gradually increasing renewable sources until 2030, which promises to yield dividends in curbing carbon emissions.
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The National Agency for Petroleum, Natural Gas and Biofuels (ANP) approved this Wednesday (7) the transfer of all of Petrobras’ stake in the Potiguar Complex, located in the Potiguar Basin, in the state of Rio Grande do Norte, to 3R Potiguar, a wholly owned subsidiary of 3R Petroleum (PVP3).
The transaction was concluded with the payment to Petrobras (PETR4), this Wednesday (7), of US$ 1.098 billion (R$ 5.408 billion), already considering the adjustments provided for in the contract, which are added to the quota of US$ 110 million (R$ 591.95 million). paid at the signing of the contract, on January 31, 2022.
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The contract also provides for the payment of US$235 million, divided into 4 annual installments of US$58.75 million, the first in March 2024.
3R will assume the operation of the asset as of June 8, 2023.
According to a statement, the acquisition includes (i) the assignment of the concession contracts for a set of 22 oil and gas fields, as well as all the infrastructure and pipeline systems that support the operation and (ii) the transfer of all the facilities of the Guamaré Industrial Asset (AIG), which includes the natural gas processing units (UPGN), the Clara Camarão refinery and the Guamaré Waterway Terminal (Terminal for Private Use).
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