Gulf Oil and Gas accountACCOUNT

Conversion of Prisma Financing & Rig Acquisition

Source: 12/21/2020, Location: South America

PetroRio S.A., in accordance with best corporate governance practices and transparency, and in order to maintain informational equity in view of the possible share offering disclosed in the Material Fact of December 15, 2020, informs its shareholders and the market in general about recent events of the Company.

Long-Term Financing - Prisma
The Company has signed an agreement with Prisma Capital for the conversion of the US$ 100 million bridge loan into a Long-Term Financing Agreement, thus extending the dates of the debt amortizations. The purpose of the financing was to provide part of the funds for the OSX-3 FPSO and Tubarao Martelo Field acquisitions, and had already foreseen this term extension, pending guarantee suitability and maintaining the same interest rate.

The long-term financing agreement maintains the principal outstanding and sets the amortizations in 4 equal tranches of US$ 25 million in July 2021, January 2022, July 2022 and January 2023.

The Tubarao Martelo Field incorporation, approved by ANP in August 2020, was another important step in the Company’s strategy of acquisitions, cost rationalization and asset redevelopment. The next step for the cluster will be the tieback between Polvo and Tubarao Martelo Fields, which will take place in mid-2021, and will result in significant improvements of PetroRio’s operational costs.

Rig Acquisition
The Company has signed an agreement with Ventura for the acquisition, for US$ 1.00 (one US Dollar), of the Atlantic Zephyr rig, a semi-submersible anchored rig suitable for interventions and completions in wells with water depths up to 300m. This acquisition’s purpose is to reduce operational costs and increase the Tubarao Martelo Field’s efficiency through a significant reduction of the response time to eventual wells shutdowns. This strategy aims to replicate the Polvo Field’s successful model, which achieved efficiency and investments payback records, due to the rig attached to the platform.

The rig is expected to add annual operational and maintenance costs of around US$ 3 million and will avoid the contracting of third-party rigs for Field interventions (the Field’s water depth requires anchored rigs, which have limited availability in Brazil, and can take several months to deploy). This acquisition will allow workovers to be carried out in 60 to 70 days, at a cost of approximately US$ 9 million (more than 40% less than the cost of a workover carried out with a leased rig).

This move is in line with all of PetroRio’s strategy aspects, improving response times, increasing operational efficiency, reducing operational costs, preserving production and increasing the reliability of its assets.

Rigs >>

Rigs News in Brazil >>

Brunei Darussalam >>  2/17/2021 - Recognising the rig’s outstanding performance across all parameters, Shell has chosen Maersk Convincer as Jack-Up Rig of the Year 2020. The rig has no...
Norway >>  2/11/2021 - Equinor Energy AS has exercised the option to add development drilling of one additional well at the Martin Linge field offshore Norway to the work sc...

United Kingdom >>  2/11/2021 - - Two jack-up rigs were retrofitted with Siemens Energy’s BlueVault™ lithium-ion energy storage system.
- Initial data show that the low-emissio...

South Korea >>  2/8/2021 - Maersk Drilling has secured a contract from Korea National Oil Corporation (KNOC) for the drillship Maersk Viking to drill one exploration well in Blo...

Norway >>  2/5/2021 - Maersk Drilling has secured an additional two-well contract for the low-emission rig Maersk Integrator with Aker BP. The plan is that in direct contin...
Ghana >>  2/4/2021 - Maersk Drilling has received a conditional letter of award (“CLOA”) from Tullow Ghana Ltd. (“Tullow”) for the provision of the ultra-deepwater drillsh...

Brazil Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 |

More News

Related Links

Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.