QGEP Announces Oil Sales Agreement for the Atlanta Field

QGEP Participações S.A. ("Company", BM&FBovespa: QGEP3) announced that Queiroz Galvão Exploração e Produção S.A. ("QGEP") has signed a Crude Oil Sales Agreement (COSA) with Shell Western Supply and Trading Ltd. ("Shell") for the Early Production System (EPS) of the Atlanta Field. This contract refers to QGEP's 30% share in the production from the field, which corresponds to the QGEP's working interest in the Consortium. The other consortium members of the Atlanta Field celebrated the same kind of sales agreement with Shell.

The COSA is for a period of three years, with the possibility of extending the contract for an additional year. The oil sales will be Free on Board (FOB) in the Floating Production, Storage and Offloading vessel (FPSO) for Shell, with a netback price mechanism.

Production from the EPS is scheduled to begin in mid-2016. During this first phase, oil production potential is estimated at 25kbbl/d, based on the two production wells which have already been drilled and equipped with wet Christmas trees and submersible pumps. The Consortium is considering drilling a third production well, which would increase average oil production to 30kbbl/d. The Petrojarl I unit will have storage capacity of 180 kbbl.

Located in Block BS-4, Atlanta is a post-salt oil field 185 km off the city of Rio de Janeiro in the Santos Basin in water depth of approximately 1,500 meters. Queiroz Galvão Exploração e Produção S.A. is the operator of the Block with a 30% ownership; other Consortium members include OGX Petróleo e Gás S.A. (40%) and Barra Energia do Brasil Petróleo e Gás Ltda. (30%).

For additional information, please contact the Company's Investor Relations team.

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Updated in  2015-10-26T10:05:48
All the dates of this page are presented in official timezone of Brasilia - Brazil.

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