Barracuda and Caratinga by Petrobras

The ANP had granted Petrobras concession rights for the production, gathering, processing, storage, sale and delivery of crude oil, natural gas and by-products extracted from the fields. Together, the two oil fields were expected to produce 773 million barrels of oil by 2025. The proved and probable oil reserves of the oil fields were estimated at 1229 million barrels and gas reserves at about 15 billion cubic metres (about 325 billion cubic feet). The project structure was conceived with Petrobras’ financing goals and restrictions in mind. The Barracuda & Caratinga Leasing Company B.V. (BCLC) was established as a special purpose vehicle in the Netherlands. Its sole purpose would be to undertake this project. BCLC owned the movable and nonmovable assets necessary for the development, production, gathering, processing, storage and delivery of hydrocarbons in the oil fields. This included the capital stock of Cardos, another SPV set up in the Netherlands and a counter party to Petrobras in an existing lease arrangement for the non-movable assets of the project. The technical feasibility of the Project was conducted by ABS Group, Inc., which concluded that the Project’s construction and operation blue prints were in accordance with good industry practice. Furthermore, DeGoyler and MacNaughthon, a worldwide petroleum-consulting firm asserted that the Project’s development plan and reserves appeared viable and commensurate with the proved plus probable reserves.

Barracuda and Caratinga, Campos Basin, Petrobras, America(South),