With Over R$ 10 Billion, Chinese Oil Multinational CNOOC Fills Petrobras’ Coffers and Acquires Another Stake in the Brazilian Pre-Salt

After the Transaction Becomes Effective, Petrobras Will Hold an 85% Stake in the Production Sharing Contract for the Excess Transfer of Rights of the Búzios Field, While CNOOC Will Hold 10% and CNODC Brasil Will Hold 5%.

Petrobras, one of the largest oil companies in the world, signed a contract on the 11th with its Chinese partner CNOOC for the assignment of 5% of its stake in the Búzios field, in the pre-salt area of the Santos Basin. The agreement is the result of the option to purchase an additional share exercised by CNOOC in September 2021.

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

The conclusion 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 for the Excess Transfer of Rights of the Búzios Field, while CNOOC will hold 10% and CNODC Brasil Petróleo e Gás Ltda. will hold 5%.

The shares in the Búzios Shared Deposit, including the parts of the Rights Transfer Contract and the BS-500 Concession Contract (100% Petrobras), will be 88.99% for Petrobras, 7.34% for CNOOC, and 3.67% for CNODC.