QGEP Participações entered into an agreement with its partner, Pacific Brasil Exploração e Produção de Óleo e Gás Ltda., to acquire working interest in three blocks in the Foz do Amazonas and the Pará-Maranhão basins (PAMA), offshore Brazil.
As part of the agreement, Pacific will pay the outstanding amount due to QGEP related to the acquisition of seismic for the PAMA blocks, and will compensate QGEP for part of the minimum financial obligations, which amount to US$10 million. This transaction will result in QGEP becoming the only concessionaire in the PAMA blocks, enabling future farm-out operations in these areas.
The additional amount of QGEP's commitments to the minimum exploratory program (PEM) based on its increased participation in these blocks is $41 million (R$132 million). This amount will be reduced to $27 million (R$86 million) until the end of next year, taking into consideration the rebate from obligations related to seismic already acquired in these blocks.
"Considering the initial information that we have on these blocks, we took advantage of Pacific's decision to exit the Brazilian market to increase our position and move on with the exploratory evaluation process, monitoring potential upsides that may come from activities across the equatorial margin," said Lincoln Guardado, QGEP CEO.
The transaction is subject to the approval by the ANP and other regulatory entities.