PetroRio has agreed to acquire a stake of 35.7% in the BM-C-30 Block, containing the Wahoo field, and a stake of 60% in the BM-C-32 Block, containing the Itaipu field, from BP, in a deal worth up to $140 million.

Both the blocks are located offshore Brazil.

Under the terms of the deal, PetroRio will pay a fixed portion of $100 million and a $40 million earn-out contingent based on first oil drawn from the Itaipu field.

The deal enables PetroRio to become the operator of the two pre-salt fields.

According to PetroRio, the Wahoo field can potentially produce more than 140 million barrels. The field, which is said to precisely fit with the value generation strategy, had oil discoveries made in 2008 with formation tests carried out in 2010.

PetroRio to acquire stakes in Wahoo and Itaipu fields offshore Brazil from BP. Map courtesy of Petro Rio S.A.

PetroRio said that the Wahoo development will enable it to form another production cluster, which will share all infrastructure, including the FPSO, with the Frade Field. This will help the company seize synergies thereby delivering a considerable and sustainable reduction in lifting cost, besides maintaining high levels of efficiency and safety.

On the other hand, the Itaipu field was discovered in 2009. Three pilot wells were drilled at the oil field, which is located near the Whales Park cluster.

PetroRio said that preliminary studies show that the accretion is shared potentially with the southeast part of the cluster. As a result, the development of the area could be via a unitization process, before defining development plans.

The acquisition will be subject to receipt of regulatory approvals and meeting of other usual preceding conditions.

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