Petrobras (PETR3; PETR4) and Shell Win $1.7 Billion Pre-Salt Auction for Mero and Atapu Fields in Brazil

The consortium formed by Petrobras (PETR3; PETR4) and Shell emerged victorious in the Auction of Uncontracted Areas held by Pré-Sal Petróleo S.A. (PPSA) on Thursday, December 4th, securing the Union's stakes in the giant Mero and Atapu fields in the Santos Basin. The strategic move, which reinforces Petrobras's portfolio and expands its reserves in high-return areas, involved a total outlay of approximately R$ 8.8 billion (Brazilian Reais). The amount came in below the federal government’s expectation of R$ 10.2 billion, as no offer was made for the Tupi field. According to PPSA president Luís Fernando Paroli, the government will not incur losses from the absence of bids, since it will continue receiving and selling the oil corresponding to its share in the area.

The acquisition reaffirms Petrobras's commitment to deep and ultra-deep water investments, particularly in the Pre-Salt, which is currently the company's main cash generator. By acquiring stakes in mature, highly productive fields, the state-owned company aims to mitigate risks and enhance financial predictability amidst global energy market uncertainties.

Auction Details and Financials

The consortium submitted proposals significantly above the minimum required value. For the Union's 3.5% stake in the Mero field, the group offered R$ 7.791 billion, representing a premium of 1.90%. In the Atapu field, the 0.95% stake was secured for R$ 1 billion, an expressive premium of 16%.

Paroli hailed the result as historic, noting that the Union's total revenue from the state-owned company could reach R$ 30 billion in 2025, surpassing all previous years combined.

Market Optimism and Strategic Impact

The market reacted with optimism to the news. Petrobras shares (PETR4) were already trading higher before the official confirmation, reflecting investor confidence in the company's strategy to expand reserves and future cash flow. The operation is seen as strengthening three core pillars for Petrobras's performance:

1. Expanded Reserves: Mero and Atapu are among the world's most productive fields;
2. Greater Cash Generation: Assets already discovered and in operation reduce risks and increase economic efficiency;
3. Sustained Dividends: Increased financial flow supports the continuation of robust dividend policies.

For shareholders, the move is expected to strengthen the company's fundamentals, improve the potential for stock appreciation, and support long-term dividend continuity. The lot related to the Tupi area did not receive offers, but PPSA clarified that this does not cause prejudice, as the Union's production in the region will continue to be commercialized normally.