Karoon M&A, page-21

Enauta may be closer to being able to bring two new partners to the Atlanta project, in the Santos Basin. The oil company moved forward with the field's farm-out process, selecting non-binding proposals from Karoon and Harbour, which are still being negotiated as preferred biders.

Atlanta's bids were received early in early August. Karoon and Harbor non-firm offerings have individual 30% stakes.From now on, the two groups will start due diligence. The delivery of binding proposals should take place between October and November.

Apparently, the offers of the two groups would not be in competition with each other. Enauta's proposal foresees the possibility of selling a percentage of up to 60%, as long as its position as project operator and participation of at least 40% in the asset is assured.Enauta's farm-out operation in Atlanta is being coordinated by Banco Itaú. The values presented in the non-binding proposals are kept confidential.

The opportunity was disclosed to the market in June and has been conducted discreetly since then. Since the end of 2020, when Barra Energia left the project, Enauta has held a 100% stake in the field. In the past, the consortium even had a third partner, the extinct OGX.The Atlanta field produces through the Early Production System (SPA), interconnected to the FPSO Petrojarl I. At the end of August, Enauta reconnected the project's third well, seeking to reach a production of 20,000 barrels/day of oil.

The field's definitive system is scheduled to go into operation in 2022. Enauta has been conducting a series of contracts for the project, which includes a negotiation process with Yinson for the adaptation and chartering of the FPSO OSX-2, indicated by the oil company to be used in the asset.The FPSO company will present a firm commercial and technical proposal for the project in October. Equipped with a production plant of 100,000 barrels/day of oil, the FPSO will have to be adapted to 50,000 barrels/day, considering a heavier oil of 14º API.

The sale of part of Enauta's stake in Atlanta is subject to the receipt of firm proposals that keep parity with the Brazilian oil company's internal estimates of values. Apparently, Karoon and Harbor will present the binding offers without knowing the value of the daily FPSO fee of the definitive system.With the delivery of firm proposals scheduled to take place between October and November, the Atlanta farm-out operation should not be completed yet in 2021, but only in 2022.If implemented in the future by Enauta, the deal will mark the third development project of the Karoon in the Santos Basin, where it is already responsible for the Baúna and Neon operations.

Source: Brasil Energia Magazine