Petro-Victory and Eneva sign agreement to develop gas from São João field

Petro-Victory and Eneva sign an agreement to exploit non-associated gas from Brazil's São João field, marking a key milestone for the region's energy sector.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Petro-Victory Energy Corp.
and Eneva have signed a Memorandum of Understanding (MOU) to develop non-associated gas resources in the São João field, located in the Barreirinhas Basin, Brazil.
The field is currently 100% owned and operated by Petro-Victory.
Under the terms of the MOU, Eneva will pay for the drilling, logging, completion and testing of a well targeting the Bom Gosto/Arpoador formations, at a depth of around 3 kilometers.
The São João field, which contains 50.1 billion cubic feet (1.4 billion cubic meters) of non-associated gas, was identified by a previous operator and confirmed by a GLJ reserve report in 2023.
This first phase of drilling aims to further evaluate the exploitable resources and determine the commercial viability of the development.

Development options and joint venture structuring

Following the first phase of drilling, Eneva has the option of financing 3D seismic acquisition, processing and interpretation for the entire field.
If this option is exercised, a joint venture (JV) could be formed between the two companies for the future development of the gas resources.
Eneva’s stake in this JV would be 72%, while Petro-Victory would retain 28%, with a clear division of responsibilities and revenues.
The MOU includes clauses guaranteeing that all activities at the São João field, as well as the eventual creation of the JV, will require the approval of the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP), in accordance with current regulations.
This approach allows us to structure a clear operational framework and spread the risks between the partners.

Challenges for the Brazilian energy sector

The development of new gas resources in the Barreirinhas Basin can play an important role in the diversification of Brazil’s energy supply sources.
Eneva, with its infrastructure close to the São João field, has a strategic advantage in effectively integrating this resource into its existing energy portfolio.
Eneva’s initial investment in drilling and possible seismic studies could also strengthen its position in the domestic gas market.
For Petro-Victory, the agreement offers an opportunity to develop its gas assets with an experienced partner, while limiting initial expenditure.
The cooperation could enable Petro-Victory to capture the added value of gas resources in a market where demand is constantly evolving.

Market outlook and regulations

Brazilian regulations, particularly with regard to the development of energy resources, play a crucial role in guiding such projects.
The approval of the ANP will be decisive for the realization of this partnership and its operational deployment.
Eneva’s financial and technical commitments in this first phase of development signal a strong interest in optimizing local gas resources.
By capitalizing on the new opportunities offered by the São João field, the two companies aim to strengthen their strategic positions in the Brazilian energy sector.
The outcome of this project could influence future approaches to partnerships in the gas sector, and potentially encourage other players to explore similar collaborations.

The United States has called on Japan to stop importing Russian gas, amid rising tensions over conflicting economic interests between allies in response to the indirect financing of the war in Ukraine.
Australian group Santos lowers its annual production forecast after an unplanned shutdown at the Barossa project and delayed recovery in the Cooper Basin.
VoltaGrid partners with Oracle to deploy modular gas-powered infrastructure designed to stabilise energy use in artificial intelligence data centres while creating hundreds of jobs in Texas.
GTT, Bloom Energy and Ponant Explorations Group launch a joint project to integrate LNG-powered fuel cells and a CO₂ capture system on a cruise ship scheduled for 2030.
Storengy has launched its 2025/2026 campaign to sell gas storage capacity over four years, targeting the commercialisation of nearly 100 TWh by 2030, with over 27 TWh available starting in 2026-27.
The US government has withdrawn its proposal to suspend liquefied natural gas export licences for failure to comply with maritime requirements, while maintaining a phased implementation schedule.
Soaring electricity demand in Batam, driven by new data centres, leads INNIO and MPower Daya Energia to secure 80 MW and launch a five-year maintenance programme.
Tamboran has completed a three-well drilling campaign in the Beetaloo Sub-basin, with 12,000 metres of horizontal sections prepared for stimulation and maintenance ahead of the commercial phase.
Valeura Energy partners with Transatlantic Petroleum to restart gas exploration in the Thrace basin, with testing and drilling planned this quarter in deep formations.
Calpine Corporation has finalised a public funding agreement to accelerate the construction of a peaking power plant in Freestone County, strengthening Texas’s grid response capacity during peak demand periods.
Naftogaz urges the European Union to use Ukraine’s gas storage capacity as part of a strategic reserve system, while calling for the end of storage filling obligations after 2027.
Spanish gas infrastructure operator Enagás is in advanced talks to acquire the 32% stake held by Singapore’s sovereign wealth fund GIC in Terega, valued at around €600mn ($633mn), according to sources familiar with the matter.
BP has awarded Valaris a $140mn drilling contract for a Mediterranean offshore campaign aimed at reinforcing Egypt’s declining gas output since 2021.
Egypt’s petroleum ministry will launch 480 exploration wells by 2030 with investments exceeding $5.7bn, aiming to revive production and reduce reliance on imports.
Faced with declining domestic consumption, Japanese liquefied natural gas (LNG) importers are ramping up commercial optimisation strategies and favouring shorter contracts to protect profitability.
European inventories curbed price declines as liquefied natural gas (LNG) supply expands and demand stays weak. Cargo arbitrage favours Europe, but winter will determine the equilibrium level. —
Sonatrach and Midad Energy North Africa signed a production-sharing hydrocarbon contract in the Illizi South perimeter, involving a total investment estimated at $5.4bn for exploration and exploitation of the site.
Kuwait Petroleum Corporation annonce une découverte majeure dans la zone offshore avec le champ de Jazah, soutenant les efforts publics d’investissement dans les infrastructures énergétiques nationales.
Rockpoint Gas Storage finalised its initial public offering in Canada with an upsized offer of 32 million shares for gross proceeds of C$704mn ($512mn), marking a new step in Brookfield’s partial divestment strategy.
Africa Energy postpones submission of its environmental impact assessment for Block 11B/12B following a recent court ruling affecting offshore exploration authorisations in South Africa.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.