Asset/portfolio management

Enauta Sells Stake in Atlanta, Oliva Fields Offshore Brazil

The post-salt, heavy-oil fields will be developed in tandem tied back to an FPSO.

The Atlanta FPSO is currently en route to Brazil. First oil from the development is expected in August.
SOURCE: Enauta

Brazilian independent Enauta has agreed to sell a 20% participating interest in the BS-4 concession, which includes the Atlanta and Oliva fields, to Westlawn Americas Offshore (WAO) for $301.7 million. WAO is a portfolio company of Westlawn Group LLC and owns various interests in the Gulf of Mexico offshore basins.

Enauta said the sale amount will be paid at closing and subject to adjustments related to the net cash flow with investments for the delivery of Atlanta and Oliva generated between the effective date of 1 November 2023 and the transaction closing date. As part of the transaction, $75 million will be paid over the coming 60 days as a loan to be deducted from the amount paid at closing.

The transaction also includes an option to sell a 20% stake in Atlanta Field B.V. (AFBV) for $65 million in 2024 upon agreement. AFBV is an Enauta affiliate that holds the long-term credit receivable from Yinson associated with FPSO Atlanta, which accounted for $328 million on 31 December 2023.

“We are pleased to make our first expansion into Latin America in partnership with Enauta,” said WAO Chief Operating Officer Greg Herbertson. “We share similar views of the long-term potential of the Americas and look forward to growing our relationship together elsewhere in the region.”

Atlanta is a post-salt oil field spread over roughly 200 km2 in a water depth of approximately 1550 m. Discovered in 2001, the field contains heavy oil with low sulfur content. Phase I and II 2P reserves at the field are estimated to be just over 165 million BOE.

The Oliva field, a nearby heavy-oil deposit, was discovered in 1993. Its 2P reserves are estimated at 65 million BOE.

Transaction closing is subject to approval from investors at the 1st and 2nd series of Enauta domestic bonds and Brazil’s National Agency of Petroleum, Natural Gas, and Biofuels (ANP).

Following successful shipyard works and sea trials, FPSO Atlanta is en route to Atlanta field, located in Santos Basin, according to the project schedule. Estimated time of arrival is 45 days. Once the FPSO is on site, anchoring and submarine systems connection works will start, with first oil estimated for August 2024.

The FPSO Atlanta boasts production capacity of 50,000 B/D of oil and 140,000 B/D of water processing. It can store up to 1.6 million B/D.