Perenco acquires mothballed Chenre, Bagre oil fields offshore Brazil from Petrobras

(WO) – Perenco Brazil is acquiring the Cherne and Bagre concessions from Petróleo Brasileiro S.A. (Petrobras) offshore Brazil for $10 million.

The deal comprises the Cherne and Bagre fields and two fixed platforms, located 30 km from the Pargo Cluster in 120-140 m water depth. The PCH-1 and PCH-2 platforms were hibernated by Petrobras in early 2020 and later scheduled for decommissioning.

Following the closing of the transaction, expected in 2025, Perenco Brazil will implement an ambitious redevelopment plan to revitalize the assets, restart production to a target rate of 10,000-15,000 bopd and unlock over 50 MMstb of reserves.

A new export pipeline will be laid directly to the greater Pargo Cluster to leverage the new Floating Storage and Offloading (FSO) infrastructure, improve efficiency and continue Perenco’s strategy of gaining independence in the basin. 

Armel Simondin, Perenco CEO, said, “This acquisition is a new milestone for the Perenco Group in Brazil. Since takeover of the Pargo assets in 2019 at a rate of 2,800 bopd, we have increased production to over 20,000 bopd and successfully installed our own FSO. Perenco is proud to deploy its know-how to extend the life of these mature fields and grow our footprint in Brazil.”

Perenco Brazil holds a 100% stake in the Pargo Cluster, which comprises the Pargo, Carapeba and Vermelho offshore fields in the shallow waters of Brazil’s Campos basin. The Pargo concession area is developed by eight fixed platforms in up to 100 m depth. 

After takeover from Petrobras in October 2019, the Pargo Cluster Development Plan was formally approved by the Brazilian authorities in 2021, along with extension of Perenco’s concession rights until 2040.  

Current production from the Pargo Cluster is approximately 20,0000 bpd, up from 2,800 bpd, when Perenco Brazil took over operations in October 2019. In December 2023, Perenco Brazil announced that first oil to its own Floating Storage and Offloading (FSO) vessel, the FSO PARGO, had been successfully received following issuance of all operational licensing from the Brazilian regulatory authorities.