HRT Participacoes em Petroleo S.A., together with its subsidiary, HRT O&G Exploracao e Producao de Petroleo Ltda., reports that it was concluded on January 8th, 2014 the commercial transaction with BP Energy do Brasil Ltda ("BP") for the transfer of 60% working interest in the Polvo Field to HRT, becoming the operator. In addition, HRT acquired 100% interest in BP ENERGY AMERICA, LLC ("BPEA") which owns the fixed platform, "Polvo A" and a 3,000 HP drilling rig that operates in the field. Maersk Oil Brasil Ltda ("MAERSK") is the partner of HRT in the field, with 40% participating interest.
The Polvo Field is located in the southern portion of the Campos Basin, 100 km eastward of the city of Cabo Frio, State of Rio de Janeiro, in Brazil. The field’s current daily production is approximately 12,000 barrels of oil per day through 10 producing wells that were drilled in the three different reservoirs. The area of Polvo license extends for 134 sq. km and contains several prospects for future exploration. The platform "Polvo A" is connected to the "FPSO Polvo" operated by BW Offshore ("BWO") through a contract that can be renewed up to the next 8 years. This FPSO has capacity for separation of hydrocarbons, water treatment, oil storage and offloading.
On May 6th 2013, HRT and BP signed a Purchase and Sale Agreement ("PSA") with an agreed price of US$ 135 million, with an effective date of January 1st 2013. The total field production in 2013 was approximately 4.2 million barrels of oil and the amount paid by HRT by the time of closing was $101 million after purchase price adjustments provided for in the PSA. The preliminary operating result of the field in 2013 to BP was approximately $67 million (60%). HRT will still receive its share of produced oil that was not exported and is stored in the FPSO, which totals approximately 300,000 barrels.
HRT’s plans propose the drilling of the first development well in 2014, with the intent to increase the production from proved undeveloped reserves. The acquisition of Polvo Field makes HRT the fifth largest operator of oil fields in Brazil.
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