Moody's alters PetroRio view to positive

Moody's Investors Service said it changed the outlook to positive from stable and affirmed Petro Rio SA's (PetroRio) B1 corporate family rating and the B1 ratings on PetroRio Luxembourg Trading Sarl’s $600 million guaranteed senior secured notes due 2026.

The agency said it changed the outlook to positive from stable, following the announcement of the acquisition of Albacora Leste, an oil and gas producing field in Brazil that will materially increase PetroRio's production and reserves size, upon the transaction’s close.

On April 28, PetroRio reported the signing of an agreement to acquire 90% of Albacora Leste, from Petrobras for $1.95 billion. According to Petrobras, in the first quarter 2022, Albacora Leste produced close to 25,500 barrels of equivalent oil and gas per day (boe/d) compared to PetroRio's nearly 36,000 boe/d production.

Upon closing of the transaction, PetroRio's production will have grown by about 60%. PetroRio estimates that Albacora Leste will bring about 240 million barrels of net proved reserves to the company, based on a Brent price estimate of $62 per barrel, Moody’s said.

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