Petrobras has signed Expenses and Volumes Equalization Agreements (AEGVs) with Shell, TotalEnergies and Petrogal concerning the shared reservoirs of Berbigão and Sururu, located in the Santos Basin.
Under the agreements, Petrobras is expected to receive approximately US$859 million from its partners in the BM-S-11A consortium by November 2026.
The settlement follows the implementation of Production Individualization Agreements (AIPs), which establish the respective interests of parties whose oil and gas reservoirs extend across different contractual areas.
The reservoirs involve both the BM-S-11A concession, operated by Petrobras with a 42.5% interest alongside Shell (25%), TotalEnergies (22.5%) and Petrogal (10%), and an adjacent Transfer of Rights area wholly held by Petrobras.
The equalization reconciles historical production revenues, capital expenditures, operating costs and royalties according to the parties’ respective interests in the shared reservoirs.
Notably, the calculations cover a period extending from September 2000 through April 2026.
Market Impact
The settlement demonstrates that the economic consequences of shared-reservoir arrangements can extend far beyond the initial negotiation of participating interests.
For operators and investors, production individualization may result in substantial financial adjustments, including retrospective transfers of revenues and costs.
The development reinforces the importance of:
- accurately defining reservoir boundaries and participating interests
- maintaining reliable historical production and expenditure records
- assessing the financial exposure associated with shared reservoirs
- anticipating equalization payments in project valuation and investment decisions
- establishing effective governance between concessionaires and other rights holders
The agreements also illustrate the increasing financial sophistication of Brazil’s mature pre-salt projects, where multiple contractual regimes may intersect within the same geological structure.
Legal & Contractual Implications
Production individualization involves a complex interaction between petroleum regulation, contractual rights and financial obligations.
Key legal considerations include:
- Production Individualization Agreements: defining participating interests, operational responsibilities and the allocation of production from shared reservoirs.
- Equalization mechanisms: establishing methodologies for reconciling historical revenues, capital expenditures, operating costs and royalties.
- Consortium governance: coordinating decision-making and information-sharing obligations among companies holding interests under different contracts.
- Financial and audit provisions: ensuring access to historical production data, expenditure records and supporting documentation.
- Payment and dispute-resolution mechanisms: addressing settlement deadlines, calculation disagreements, audit rights and enforcement.
- Corporate transactions: assessing potential equalization liabilities when acquiring interests in producing fields or exploration assets.
For international investors, the case illustrates why due diligence in Brazilian upstream transactions must extend beyond reserves, production forecasts and concession terms.
The existence of shared reservoirs and unresolved equalization obligations may materially affect asset valuation, transaction pricing and the allocation of liabilities between buyers and sellers.
Photo: Canva
