Brazilian state-owned oil company Petrobras will receive approximately US$859 million from its partners to reconcile production revenues, investment spending, operating costs and royalties associated with the shared Berbigão and Sururu oil reservoirs in the Santos basin.
In an October 13 announcement, Petrobras said it had signed cost and volume equalization agreements with Shell, TotalEnergies and Petrogal, its partners in the BM-S-11A consortium. Payment is expected to be completed by November 2026.
The agreements follow the approval of production individualization agreements (PIAs) by Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP), which established each company’s proportional interests in the shared reservoirs.
The agreements are needed because the oil reservoirs extend across areas governed by different contracts, requiring the companies to establish their respective shares of production and associated costs.
The equalization arrangements cover the period from September 15, 2000, when the BM-S-11 concession contract was signed, through April 30, 2026, the day before the Berbigão and Sururu PIAs took effect.
The shared reservoirs involve two contractual arrangements: the BM-S-11A concession, operated by Petrobras, and an onerous transfer contract, also operated by Petrobras, under which the company holds a 100% interest.
Under the BM-S-11A concession, Petrobras holds a 42.5% interest, while Shell holds 25%, TotalEnergies 22.5% and Petrogal 10%.
The agreements reconcile financial and production-related obligations in line with the parties’ respective interests in the shared reservoirs, accounting for revenues, investments, operating expenditure and oil royalties over the period covered.
Brazil’s Santos basin is a major hub for Petrobras’ offshore operations, with extensive pre-salt developments contributing to the country’s oil production and supporting continued exploration.