Brazilian state-owned oil and gas group Petrobras has approved the sale of its 66% stake in the exploration block BM-S-8 in the Santos basin of Brazil to Statoil. In addition, Petrobras and Statoil are negotiating a Memorandum of Understanding for the assessment of other strategic cooperation initiatives, with a view to activities over long-term.
Block BM-S-8 is currently operated by Petrobras (66%), in partnership with Petrogal (14%), Queiroz Galvão Exploração e Produção (10%) and Barra Energia do Brasil Petróleo e Gás (10%). A discovery was made in this block, through exploratory drilling in the Carcará area. The licence is in its final exploration phase with one remaining exploration commitment well to be drilled by 2018. Statoil estimates the recoverable volumes within the BM-S-8 licence to be in the range of 700 to 1,300 mboe. The transaction price is US$2.5bn, including a first instalment of US$1.5bn to be paid once the transaction is closed. The remaining amount will be paid in instalments contingent upon subsequent events, such as the signing of the Production Individualization Agreement (unitization).
As part of its 2015-2016 disposal plan, Petrobras has completed the sale of its entire 67.19% stake in Petrobras Argentina (PESA), held through Petrobras Participaciones S.L. (PPSL), to Pampa Energía. The operation was completed with the payment of US$897m by Pampa, after all the conditions precedent in the contract signed in May 2016 were met. The transaction also provides for contingent payments related to future events, such as renewals of concessions, and includes an agreement for subsequent operations, in order for Petrobras to acquire 33.6% of the Rio Neuquen concession in Argentina and 100% of the Colpa Caranda asset in Bolivia, for a total price of US$52m, subject to approval by PESA’s Board of Directors.
Petrobras is also in exclusive talks with Mexican group Alpek to divest its loss-making PetroquimicaSuape and Citepe petrochemical assets in the northeastern state of Pernambuco.