Petrobras Sells Asset Stake in Nigeria

Petrobras’s Participation in Dutch Joint Venture PO&GBV Could Reach US$ 1.530 Billion

Petrovida will acquire 50% of Petrobras in the Dutch joint venture Petrobras Oil & Gas (PO&GBV), which has stakes in exploration and production blocks in Nigeria, worth up to US$ 1.530 billion. The other half of PO&GBV belongs to BTG Pactual, which will remain in the business. The agreement includes an 8% stake in block OML 127, where the Agbami producing field is located.

A 16% share in block OML 130 encompasses the Akpo and Egina areas, which are already in the final stages of development. The company PO&GV is not the operator of any of the assets. Petrobras’s production share in these blocks is equivalent to approximately 21,000 barrels of oil equivalent (oil plus gas) per day, with the first payment to be made upfront in the amount of US$ 1.407 billion.

The remaining amount of US$ 123 million will be paid later as soon as the re-determination process for the Agbami field is implemented.

This Petrobras negotiation is subject to the fulfillment of regulatory conditions, such as approvals by Nigerian government agencies. Petrovida, the buyer of the assets, is a joint venture formed by the Dutch Vitol 50%, Canadian Africa Oil 25%, and African Delonex.

Petrobras Will No Longer Be Privatized, Focus is on National Industry

After the country elected Jair Bolsonaro, the Brazilian oil and natural gas industry will likely continue with reforms aimed at attracting investments and boosting production, especially in the highly productive pre-salt frontier. Petrobras will remain a state-owned mixed-capital company, but subsidiaries that hold dominant positions in refining, distribution, logistics, and transportation markets will be sold, according to the plan. Click here to learn more.

Engineering Internship Program at Halliburton, candidates from any background