document: On 3 February 2020, PetroRio announced that it signed a definitive agreement to acquire 80% working interest in the Tubarao Martelo production concession from Dommo Energia and would acquire the FPSO OSX-3 for USD 140 million.    The goal of the transaction is for      PetroRio to jointly operate the easterly adjoining Polvo field and the      Tubarao Martelo field as a cluster development thus reducing OPEX costs      50% with the synergies and extending field recoverable reserves life to      2035. The announcement by PetroRio also included an update on three new      pool discoveries drilled by the operator in December 2019 that are within      6-7 km of the FPSO OSX-3 in the western area of the Polvo production      concession.  PetroRio plans to tie-back      production from its Polvo A fixed platform in the Polvo field to the FPSO      OSX-3 located approximately 9.9 km to the southwest and de-commission the      FPSO Polvo by mid-2021 with a Capex estimated to be between USD 50-60      million.  The transaction is complex with      additional financial commitments by PetroRio besides the USD 140 million      for the purchase of the FPSO OSX-3. From the current transaction date to      the completion of the tieback operation, PetroRio will have rights to 80%      of the production from the Tubarao Martelo Field and be responsible for      100% of the FPSO's charter expenses, the Tubarao Martelo field's Opex, and      Capex and abandonment costs. During this phase, through approximately      mid-2021, Dommo will reimburse PetroRio a monthly fee of USD 840 thousand      equivalent to 20% of Dommo's current Opex, excluding the FPSO charter      costs. Once the tieback is complete, PetroRio will be responsible for 100%      of all costs for the cluster and Dommo will stop paying the monthly fee      with PetroRio to have rights to 95% of the produced oil from the cluster      up to 30 MMbo produced after tieback, and 96% thereafter.  The 1 January 2019 BAR reserves      report had the Polvo field holding original oil in place (OOIP) of 404.84      MMbo and original gas in place (OGIP) of 32.55 Bcfg and with a cumulative      production of 44.06 MMbo and 4.36 Bcfg represented a recovery factor to      that date of 11% for oil and 13% for the gas. The 1 January 2019 BAR      reserves report had the Tubarao Martelo field holding OOIP of 428.49 MMbo      and OGIP of 46.96 Bcfg and with a cumulative production of 15.02 MMbo and      1.65 Bcfg represented a recovery factor to that date of 4% for oil and 4%      for the gas. Both fields have a low GOR of approximately 100 cu-ft/bo and      produce oil of 20Â° to 21Â° API. The Polvo field had an average      daily production in 2019 of approximately 8,437 bo/d and Tubarao Martelo      5,815 bo/d.  Dommo Energia held 100% working      interest in the Tubarao Martelo production concession but after formal      governmental approvals PetroRio will be the operator with 80% working      interest and Dommo will hold 20%.  On 3 February 2020, PetroRio also announced      that it completed two directional special wells and one horizontal      development well in the Polvo production concession and discovered three      new oil pools one in the Eocene Embore Formation and two in the      early-Cretaceous Quissama Formation. The three wells include the POL-N      (9-POL-042D-RJS) and POL-Na (9-POL-043DP-RJS) special wells completed in      December 2019 and the POL-Nb (7-POL-44HP-RJS) horizontal development well      completed and initially tested in January 2020.    On 3 December 2019, Dommo Energia announced that it was nearing conclusion of the revitalization project in its Tubarao Martelo field in the Campos Basin that it originally announced it would undertake in November 2018. On 26 November 2018, the company announced that the revitalization project consisted in the completion of well 7-TBMT-4HP-RJS, that needed to be connected to FPSO OSX 3, and the workover of 4 producing wells (7-TBMT-2HP-RJS, 7-TBMT-6HP-RJS, 7-TBMT-8H-RJS and 9-OGX-44HP-RJS). The company indicated that the revitalization project would increase production in the field to an estimated of 10,000 bo/d by the end of 2019. The estimated cost of the project was USD 80 million. From January to October 2019 the field has produced an average of 5,831 bo/d, 597 Mcfg/d, and 2,345 bw/d. In October 2019, only three wells were producing, the 7-TBMT-6HP-RJS, 7-TBMT-8H-RJS and 9-OGX-44HP-RJS, with the 7-TBMT-2HP-RJS not producing.   The Tubarao Martelo field was discovered in December 2010 with well 1-OGX-WAIKIKI-1-RJS (1-OGX-25-RJS). The well was targeting post-salt Eocene sandstones of the Carapebus Formation and post-salt Upper Cretaceous carbonates of the Imbetiba Formation. The carbonate reservoir is the main reservoir of the field. Tubarao Martelo field was appraised between February 2011 and April 2011 by 2 wells (3-OGX-35D-RJS and 3-OGX-41D-RJS). The field was declared commercial in April 2012 by OGX. It was the first commercial declaration of an offshore oil discovery for the company. The Tubarao Martelo field started production in December 2013 through the FPSO OSX-3. As of September 2019, is has produced 17.6 MMbo and 1.8 Bcf of gas. Development drilling started in September 2012 and concluded in February 2013. No improved recovery techniques have been applied in this field.  The Polvo production concession covers an area of 134.1 sq km and has been producing since 2007 when it was brought online by former operator Devon. From February 2012 to February 2013 the Polvo Field produced an average of 13,711 bo/d, 20Â° API, and about 20,000 bw/d. There are about 10 wells producing currently. The Polvo Field reservoirs include the Maastricthian and Turonian turbidites of the Carapebus Formation and the Early Cretaceous Quissama Formation carbonates are also productive. Rumors of BP possibly selling assets surfaced in August 2012. On 6 May 2013, HRT announced that it acquired 60% working interest and operations of the Campos Basin Polvo production concession from BP Energy do Brasil Ltda. The retroactive purchase date is 1 January 2013 for a price of USD 135 million. HRT acquired all associated equipment from a separate BP subsidiary that owns and operates the Polvo A fixed platform and other drilling and production equipment with the exception of the FPSO Polvo that is owned and operated under contract by BW Offshore. The transaction was granted formal approval by the ANP on 18 December 2014.
summary: Petro Rio has signed to acquire an 80% interest from Dommo Energia in the TubarÃ£o Martelo ('Hammer Shark') field in BM-C-039.