Barra Energia announces amendment to the Charter Agreement for the Atlanta Field FPSO, with delivery scheduled for the fourth quarter of 2017

21/07/2017

Barra Energia announced the execution of an amendment to a key contract in respect of the Atlanta oil field development in block BS-4 that will enhance the economics of this project. Revisions to this agreement with Teekay Offshore Partners in relation to the Petrojarl I floating, production, storage and offloading vessel (“FPSO”) were necessary in light of the retrofitting work that was being performed and the associated delay in delivery of the FPSO.

The amendment includes a firm delivery date in the fourth quarter of 2017, material reductions to the daily rate for the first 18 months, after which the original day rate will become effective plus a variable rate based on price/oil volume during the remainder of the contract.

Renato Bertani, CEO of Barra Energia, commented that “We are very pleased with the outcome of these complex negotiations, which will allow for an overall daily operating cost reduction of about 15% during the first 18 months of the contract. Equally important, we now have much higher certainty that production in the Atlanta Field will commence early first quarter 2018. This will be a significant landmark for Barra Energia as a deepwater producer offshore Brazil.”

The Atlanta field is a Santos Basin post-salt oil development 185 km off the coast of Rio de Janeiro in water depth of approximately 1,500 meters. Queiroz Galvão Exploração e Produção S.A. is the operator of the Block with a 30% ownership. The other consortium members include OGX Petróleo e Gás S.A. (40%) and Barra Energia do Brasil Petróleo e Gás Ltda. (30%). Two horizontal production wells are ready to be connected to the FPSO to start production, having already been successfully drilled, tested and completed. Initial total flow rates are expected to be approximately 20,000 barrels of oil per day and a third well may be drilled around 6 months after first oil.

About Barra Energia

Barra Energia do Brasil Petróleo e Gás Ltda is a Brazilian company focused on petroleum exploration and production in highly prolific sedimentary basins offshore Brazil, with main financial support from the private equity firms First Reserve and Riverstone. The primary focus areas of Barra Energia include the Santos and Campos basins and the pre-salt play