GREY:HRTPF - Post by User
Comment by
robnhoodon Aug 30, 2014 5:59pm
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Post# 22893053
RE:RE:Buy Petrobras Fields?
RE:RE:Buy Petrobras Fields?The PetroRecôncavo began operations in February 2000 is currently the largest independent provider of exploration and production of oil and gas (E & P sector) onshore Brazil, in terms of daily production in boe, according to data released by the ANP.
The Company is a company specialized in the development and revitalization of mature and marginal fields in onshore basins, and is the operator of all of its fields.
The vast majority of reserves PetroRecôncavo consists of Light Oil, which is less common in Brazil and sold at higher prices compared to the Heavy Oil.
17 Fields Operated by PetroRecôncavo are located in the Reconcavo Basin in the state of Bahia, which contains the largest oil reserves onshore in Brazil, according to ANP. The Company operates through 12 production of its 17 fields, which is expected due in 2025 Contract may be renewed for an additional term of 27 years. Opera 5 fields, in which it holds 100% interest, in terms of concessions granted to them in several bidding rounds sponsored by the ANP that expire between 2031 and 2033, and may also be renewed for an additional term of 27 years. The Company estimates that the fields contain significant Operated gross volume of Original Oil in situ, totaling approximately 499 million barrels of oil, of which only 17% was produced until December 31, 2013.
Under the Production Contract, all oil and natural gas produced by the Company in the 12 fields concession to Petrobras Petrobras owns and should be delivered to it. The reference price of the volumes of incremental oil that PetroRecôncavo delivery to Petrobras under the Production Agreement is based upon the benchmark established by the Brent crude oil market, or Brent, which is used to price about two-thirds of the supply of crude oil internationally traded. Under the Production Contract, the reference price for natural gas that the Company delivers to Petrobras is the average price of industrial use of this commodity in the state of Bahia.