Petrobras advances sale of Amazon gas field

Wednesday, June 21, 2017

Brazil's state-run energy giant Petrobras has sent invitations to firms interested in bidding for 100% of the Azulão gas field in the Amazon basin.

The companies, which prequalified after an initial call for expressions of interest last month, were given bidding instructions along with detailed information of the area, according to the government's Agência Brasil news service.

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The field forms part of the BA-3 concession in Amazonas state, where natural gas was discovered in the late 1990s.

Future production from Azulão has been earmarked to fire a 102MW thermoelectric plant of the same name, due online in 2019. Petrobras secured long-term power purchase agreements for the plant at an auction in 2014.

The plant will be linked to the national grid via the Tucuruí-Macapá-Manaus transmission line, completed in 2013.

Bidders must have exploration and production experience in the Amazon region or own at least 200MW of thermal power capacity, according to Petrobras.

The Rio de Janeiro-based firm is selling around US$35bn of assets as it attempts to overcome a crippling corruption scandal and pay off the industry's largest debt load.

Petrobras has netted US$13.6bn from the program since January 2015 and plans to raise a further US$21bn over the next two years.

In related news, ITC Global has signed a deal to provide oil and gas communications services for seven floating production, storage and offloading (FPSO) vessels in Brazil.

The contract represents the second of three deployment phases in a multimillion-dollar agreement for vessels in West Africa, Brazil and North America, ITC Global said in a statement.

The company did not disclose the name of the client or financial details.