Two operators have submitted binding proposals in a Petrobras divestment process of a major onshore natural gas hub in the Solimoes basin in the heart of the Amazon region in Brazil.

Confirming press reports, Petrobras said on Friday it has received offers from local independent players Eneva and 3R Petroleum for the so-called Urucu cluster.

On offer are the Arara Azul, Araracanga, Carapanauba, Cupiuba, Leste do Urucu, Rio Urucu and Sudoeste Urucu fields, which combined produced 101,300 barrels of oil equivalent per day in October, consisting of 15,700 barrels per day of light 49 degrees API crude and 13.6 million cubic metres per day of gas.

Brazilian newspaper Valor Economico earlier published that 3R Petroleum bid close to $1 billion for the Urucu cluster, surpassing the $600 million offer presented by Eneva.

“Petrobras clarifies that the bids are close to the firm instalments of the proposals,” said the oil giant, adding it also takes into consideration firm and contingent payments, as well as other relevant contractual conditions, to determine the winning bid.

In addition to the concession and production facilities, the transaction also includes four natural gas processing plants, treatment and compression stations, oil tanks and liquid petroleum gas spheres.

Eneva in 2018 acquired the Azulao natural gas field in the Solimoes basin from Petrobras for $54.5 million, and earlier on Friday purchased exploration and production rights for the nearby Jurua field.

As for 3R Petroleum, the company has been building a sizeable onshore portfolio in Brazil with the purchase of the Macau, Fazenda Belem and Rio Ventura clusters from Petrobras.

The company, through one of its major stakeholders, has also emerged as the front-runner to acquire an operating stake in the troubled Papa Terra field in the Campos basin.

Finance

Two in race for Petrobras huge natural gas cluster in Brazil’s Amazon