Petrobras, CNOOC Sign Búzios Field Deal

Tuesday, March 8, 2022

Brazilian oil firm Petrobras last Friday signed a contract with its Chinese partner CNOOC for the assignment of 5% of its interest in the Búzios field, in the Santos Basin pre-salt area, offshore Brazil.

The agreement is the result of the option to purchase an additional share, exercised by CNOOC in September 2021.

"The amount, related to [CNOOC] portion, to be received in cash by Petrobras at the closing of the operation will be US$ 2.12 billion and was calculated with a base date of 09/01/2021 and with an exchange rate of R$5.07/US$. This amount refers to the compensation and reimbursement of the signature bonus of CPBL's additional participation. The aforementioned value will still be subject to the usual adjustments in this type of contract between the base date and the closing date," Petrobras said.

The completion of the transaction is subject to the approvals of the Administrative Council for Economic Defense (CADE), the National Agency of Petroleum, Natural Gas and Biofuels (ANP), and the Ministry of Mines and Energy (MME).

After the transaction becomes effective, Petrobras will hold an 85% stake in the Production Sharing Contract of the Transfer of Rights Surplus of the Búzios field, while CNOOC will hold 10% and CNODC Brasil Petróleo e Gás Ltda., 5%.

The stakes in the Búzios Shared Deposit, including the portions of the Transfer of Rights Agreement and of the BS-500 Concession Agreement (100% Petrobras) will be 88.99% Petrobras', 7.34% CNOOC's and 3.67% CNODC's.

Categories: Energy Industry News Activity Production South America Floating Production

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