Enauta Confirms New Atlanta FPSO Buy

Enauta Confirms New Atlanta FPSO Buy
Enauta has entered into an agreement for the purchase of FPSO OSX-2 for the definitive system of the Atlanta field off Brazil.

Oil and gas firm Enauta has entered into an agreement for the purchase of FPSO OSX-2 for the Definitive System (DS) of the Atlanta field offshore Brazil.

Enauta said that the acquisition would be completed through an indirect subsidiary and that it was contingent on compliance with the agreed contractual conditions. The buy should be completed in the first quarter of 2022.

“The acquisition of FPSO is another important step towards the implementation of the Definitive System of the Atlanta Field. The negotiated terms allow the project to have low breakeven and attractive returns.

If we are successful in sanctioning the project, Atlanta’s production will reach around 50 thousand barrels of oil per day as of 2024, creating substantial value for our shareholders,” Décio Oddone, Enauta CEO, said.

Enauta has previously signed a Letter of Intent with Yinson regarding detailed engineering and long lead item commitments for the FPSO OSX- 2. This followed a Memorandum of Understanding which gave the company an exclusive purchase option.

Under these agreements, Yinson would be in charge of the adaptation of the FPSO unit through an EPCI contract, with warranty and operation and maintenance for 24 months. FPSO acquisition and adaptation costs are estimated at around $500 million while the capex related to well drilling and subsea equipment should be around $500-700 million.

The Atlanta field is in the Santos Basin and operated by Enauta which holds 100 percent interest. The field started production in 2018 through an Early Production System (EPS). It consists of three wells connected to the FPSO Petrojarl I.

Just last week, Enauta agreed to extend the charter, operation, and maintenance of Petrojarl I FPSO. The extension will last up to two years.

Production from the Atlanta field was temporarily shut down due to repairs being needed on Petrojarl I FPSO’s production line. Although the repairs were completed on time, production restart was delayed due to a Covid-19 outbreak.

Enauta said that the production from the field has now restarted and that the second well awaits identification and repair of the electrical system failure. According to the company, The field is producing around 4,000 barrels of oil per day.

To contact the author, email bojan.lepic@rigzone.com

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