PetroRio reschedules debt with Chevron
Brazilian oil and gas company delays payments on $142 million financing for Frade oilfield and FPSO acquisition
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Brazilian oil and gas company PetroRio announced on Tuesday that it has reached an agreement with Chevron to delay the payment of debt related to the acquisition of an oil field and a floating production, storage and offloading (FPSO) vessel. .
PetroRio owes $142 million on a loan it signed last year to buy 51.7% of Frade’s deepwater oilfield and an FPSO from Chevron, the company said in a securities filing.
The loan charged 5.82% per annum, and PetroRio faced $77 million in loan repayments in September this year and about $64 million in March 2021. Now it will pay $15 million in November, $30 million in May 2021 and the remaining $97 million in November 2021. at 7% per year, according to the filing.
“The new agreement, which was negotiated during the COVID-19 pandemic, significantly improves liquidity in the short to medium term, contributing to a more even cash flow and better cash management of the company”, said PetroRio.
PetroRio increased its stake in the Frade field to 70% thanks to the agreement with Chevron. State oil company Petrobras subsequently agreed to sell its 30% stake in Frade to PetroRio for $100 million in December last year.
The Rio de Janeiro-based company first bought a stake in Frade from Japan’s Inpex and Sojitz in October 2018. The Frade field began production in 2009 and reached production of 70,000 barrels per day in 2011, before that an oil spill stops production. Chevron paid a $41.6 million fine and restarted production in 2013.
PetroRio said in the filing that cost reductions from land, air and sea logistics synergies helped lower lift costs to $17.30 a barrel.
In February, the company agreed to buy the OSX-3 FPSO vessel for $140 million and an 80% stake in the Tubarão Martelo oil field from Dommo Energia. The Tubarão Martelo field adjoins the Polvo field, which is operated by PetroRio, and will allow the company to form a cluster of oilfields in the Campos Basin.