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Petrobras Secures $859M Settlement for Santos Basin Reservoirs
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Key Takeaways
Petrobras will receive $859 million from its BM-S-11A partners, with settlement expected by November 2026.
The agreements follow ANP-approved ownership revisions for the Berbigao and Sururu reservoirs.
PBR holds 45.394% of Sururu and 62.913% of Berbigao, with partners reconciling costs, volumes and royalties.
Petrobras S.A. (PBR - Free Report) , a Brazilian state-owned energy firm, announced the signing of cost and volume balancing agreements with its partners, Shell plc (SHEL - Free Report) , TotalEnergies SE (TTE - Free Report) and Petrogal S.A. in the BM-S-11A consortium. This agreement covers the Berbigao and Sururu shared reservoirs and associated assets in the prolific Santos Basin, offshore Brazil. Under this agreement, PBR will receive a net payment of approximately $859 million from its partners, with settlement expected by November 2026.
The agreements come after the execution of production individualization agreements (AIPs) for the Berbigao and Sururu reservoirs. Production Individualization Agreements are required when a hydrocarbon reservoir extends across areas with different ownership interests. The AIPs establish how the reservoir will be jointly developed and how resources will be allocated among multiple partners. The agreement outlined the revised ownership structure for the Berbigao and Sururu reservoirs, which was authorized by Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP). Following the revised ownership structure, the companies will reconcile their respective operating costs, production volumes and royalties.
Under the revised ownership arrangement, Petrobras has a 45.394% interest in the Sururu shared reservoir, while Shell, TotalEnergies and Petrogal hold 23.742%, 21.367% and 9.497%, respectively. In the Berbigao shared reservoir, Petrobras has a 62.913% interest. SHEL and TTE hold 16.125% and 14.512%, respectively, while Petrogal has the remaining 6.450%. The Sururu and Berbigao shared reservoirs extend across the BM-S-11A concession, operated by Petrobras and the Transfer of Rights agreement, in which the Brazilian energy company holds a 100% interest. The cost and volume balancing agreements apply to the period from Sept. 15, 2000, through April 30, 2026, just before the production individualization agreements were implemented.
About the Partners
Shell is one of the oil and gas supermajors headquartered in London, with operations spread across the globe. SHEL’s long-term strategy revolves around liquefied natural gas, considering the secular shift to cleaner-burning fuel for power generation worldwide, particularly in the Asia-Pacific region. Shell continues investing in projects that can support long-term production growth and reserve replacement so that the company can sustain earnings growth in the long run.
TotalEnergies is one of the largest integrated energy firms, with operations spread across multiple geographies. Headquartered in France, the company is increasing energy production from LNG and clean electricity. In fact, the company had 37.4 gigawatts of gross installed renewable power capacity by the end of the June quarter. The company is also a major upstream player with a strong production growth profile.
Petrogal is a subsidiary of Galp Energia (GLPEY - Free Report) . Galp Energia is a Portuguese energy company engaged in exploration and production activities. It refines and markets oil products and gas, as well as engages in marketing and sales activities.
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Petrobras Secures $859M Settlement for Santos Basin Reservoirs
Key Takeaways
Petrobras S.A. (PBR - Free Report) , a Brazilian state-owned energy firm, announced the signing of cost and volume balancing agreements with its partners, Shell plc (SHEL - Free Report) , TotalEnergies SE (TTE - Free Report) and Petrogal S.A. in the BM-S-11A consortium. This agreement covers the Berbigao and Sururu shared reservoirs and associated assets in the prolific Santos Basin, offshore Brazil. Under this agreement, PBR will receive a net payment of approximately $859 million from its partners, with settlement expected by November 2026.
The agreements come after the execution of production individualization agreements (AIPs) for the Berbigao and Sururu reservoirs. Production Individualization Agreements are required when a hydrocarbon reservoir extends across areas with different ownership interests. The AIPs establish how the reservoir will be jointly developed and how resources will be allocated among multiple partners. The agreement outlined the revised ownership structure for the Berbigao and Sururu reservoirs, which was authorized by Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP). Following the revised ownership structure, the companies will reconcile their respective operating costs, production volumes and royalties.
Under the revised ownership arrangement, Petrobras has a 45.394% interest in the Sururu shared reservoir, while Shell, TotalEnergies and Petrogal hold 23.742%, 21.367% and 9.497%, respectively. In the Berbigao shared reservoir, Petrobras has a 62.913% interest. SHEL and TTE hold 16.125% and 14.512%, respectively, while Petrogal has the remaining 6.450%. The Sururu and Berbigao shared reservoirs extend across the BM-S-11A concession, operated by Petrobras and the Transfer of Rights agreement, in which the Brazilian energy company holds a 100% interest. The cost and volume balancing agreements apply to the period from Sept. 15, 2000, through April 30, 2026, just before the production individualization agreements were implemented.
About the Partners
Shell is one of the oil and gas supermajors headquartered in London, with operations spread across the globe. SHEL’s long-term strategy revolves around liquefied natural gas, considering the secular shift to cleaner-burning fuel for power generation worldwide, particularly in the Asia-Pacific region. Shell continues investing in projects that can support long-term production growth and reserve replacement so that the company can sustain earnings growth in the long run.
TotalEnergies is one of the largest integrated energy firms, with operations spread across multiple geographies. Headquartered in France, the company is increasing energy production from LNG and clean electricity. In fact, the company had 37.4 gigawatts of gross installed renewable power capacity by the end of the June quarter. The company is also a major upstream player with a strong production growth profile.
Petrogal is a subsidiary of Galp Energia (GLPEY - Free Report) . Galp Energia is a Portuguese energy company engaged in exploration and production activities. It refines and markets oil products and gas, as well as engages in marketing and sales activities.