Brazilian oil company PetroRio has received regulatory approval to acquire a 30% stake in the Frade oil field in the Campos Basin offshore Brazil from Petrobras.

The company expects that the procedures for the assignment of 30% interest to PetroRio will be completed in the upcoming days.

Upon the closing of the acquisition, PetroRio will hold 100% of Frade Field, and 100% in the Frade FPSO.

"This transaction will increase company’s 1P reserves by 17 million barrels and 5.2 thousand barrels will be added to PetroRio’s daily production. Additionally, the acquisition’s closing allows the company to be entitled to an oil stock of approximately 400 thousand barrels," PetroRio said Thursday.

The oil company also said that ANP had approved the reduction of the estimated Frade Field decommissioning amount, from US$ 393 million to US$ 179 million, "which will result in a positive adjustment, corresponding to the abandonment provision line in PetroRio’s balance sheet."

"The acquisition represents the conclusion of yet another successful step in the execution of PetroRio’s growth strategy, through the acquisition and redevelopment of producing fields, replicating Polvo Field’s success in Frade, thereby increasing the Field’s profitability and extending its economic life," PetroRio said.

PetroRio became the operator of the Frade field when it in 2019 bought Chevron's 51.74% stake in the producing field - including the FPSO Frade -  increasing its interest to 70%. It then, in October 2019, bought a further 18.3% stake from Japanese trio Inpex, Sojitz, and Jogmec.

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