Bagre oil fields, for a sum of $10 million—$1 million upfront and an additional $9 million upon closing. Notably, no contingent payments or adjustments have been disclosed in this transaction.
Faced with the costly prospect of decommissioning these assets, Petrobras’s decision to offload Cherne and Bagre may seem more like a strategic retreat than a loss. The Brazilian oil giant has demonstrated adeptness in shedding less-central assets, typically resulting in sustainable outcomes for both itself and the acquirers. This isn’t Perenco’s first rodeo either; following their acquisition of the Pargo, Carapeba, and Vermelho fields, they recently integrated an FSO as an alternative to the existing Garoupa infrastructure for production exports.
Initially put on the market in 2019 (Bank of America as advisors), the Garoupa cluster—which includes the now-sold fields—drew interest from industry players like Trident Energy, Premier Oil, and Perenco. However, a deal failed to materialize by mid-2020, prompting Petrobras to hibernate the fields amid fluctuating production levels, which stood at approximately 4,000 boed/d by Q4 2023. Cherne and Bagre production was ceased in March 2020.