Petronas buys 50 pct equity in Brazilian deep water oilfields

Petronas’ subsidiary, Petronas Petróleo Brasil Ltda. (PPBL) on Dec 28, 2019, has announced the completion of the transaction for the acquisition of 50 percent equity in two Brazilian oilfields.

The Tartaruga Verde producing field (BM-C-36 Concession) and Module III of the Espadarte field (Espadarte Concession), are located in deep waters of the Campos Basin, offshore Brazil.

PPBL signed a sales and purchase agreement (SPA) with Petróleo Brasileiro S.A. (Petrobras), Brazil’s petroleum multinational corporation on April 25 2019. Petrobras, who is the operator, holds the remaining 50 percent equity.

The signing of the closing agreement to mark the completion of the acquisition was held in Rio De Janeiro, Brazil, on Dec 27 2019.

“The completion of the acquisition of Tartaruga Verde and Module III of Espadarte, as well as the three exploration blocks, won in the recent bid rounds in Brazil is testament to Petronas’ steady progress in expanding our oil business in South America.”

“We also look forward to this new partnership with Petrobras to meet Brazil’s energy aspirations,” Petronas executive vice president & chief executive officer of Upstream, Adif Zulkifli said.

Aside from expanding its portfolio in South America, Petronas has signed six new production sharing contracts (PSC), of which four PSCs in Malaysia and two in Gabon, in addition to the acquisitions of two offshore blocks in Egypt.

This is in line with Petronas’ three-pronged growth strategy to secure opportunities in prolific basins in expanding our core business for future cash generation. - Bernama