By Gram Slattery
RIO DE JANEIRO, May 12 (Reuters) - Petrobras has
delayed the submission of binding offers for an oilfield cluster
known as Polo Garoupa for a fourth time, two sources with
knowledge of the matter told Reuters, as investor appetite in
Brazil's offshore oil sector rapidly dries up.
With annual production of 19,600 barrels of oil equivalent
per day according to bidding documents released last year by the
state-run oil company, Garoupa is the largest production asset
in Petrobras' expansive divestment portfolio.
While a number of potential buyers took an initial look at
it, including Brazil's Petro Rio SA , Anglo-French
firm Perenco and British-based Premier Oil PLC, current
low oil prices make the shallow water fields an increasingly
hard sell, said the sources, who requested anonymity as they are
bound by confidentiality agreements.
Even before oil prices crashed amid worldwide coronavirus
quarantine measures, the asset was considered complex, due to
high decommissioning costs and challenging geology, the sources
added.
Binding offers were originally due in early December, but
were postponed to March, then late April. They have been
postponed again until May 21, the sources said.
In April, Garoupa - as well as all other shallow-water
clusters owned by Petrobras, which tend to have relatively high
lifting costs - was idled. One of the sources said that measure
was a further setback for the sale process, as significant
idling time can cause offshore infrastructure to require large
amounts of maintenance when restarted.
At least three companies that took an initial look at the
asset have since formally dropped out, including energy-focused
U.S. private equity firm EIG Global Energy Partners. Many of the
small and medium oil independents that have been frequent
bidders for Petrobras' production assets have seen their cash
positions deteriorate rapidly in recent months.
Petroleo Brasileiro SA, as Petrobras is formally known, did
not respond to a request for comment, nor did Perenco, Petro Rio
or Premier.
EIG declined to comment.
Reuters reported last week that Petrobras had postponed a
plan to sell a piece of its much larger Marlim cluster due to
challenging market conditions.
(Reporting by Gram Slattery
Editing by Marguerita Choy)
