Petrobras Aligns Sale Contract for Baúna Field in Santos Basin With Karoon Oil and Gas

According to Petrobras, the adjustments are regarding the deadline for the two installments that Karoon has to pay for the transaction, totaling US$ 665 million, announced in July 2019

Petrobras reported in a relevant fact last night (07/24) that it has adjusted the terms of the sale contract for the Baúna oil field (BM-S-40), located in shallow waters in the Santos Basin, to the Australian Karoon Energy. To Increase Offshore Labor Demand, Petrobras Starts New Pre-Embarque Procedure Starting Monday (07/27)

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According to the state-owned company, the adjustments were made due to the impact caused by the COVID-19 pandemic and the consequent difficulty in meeting the originally defined preceding conditions, in common agreement with Karoon Petroleum & Gas.

According to the Petrobras report, the adjustments relate to the deadline for the two installments that the Australian company has to pay for the transaction, totaling US$ 665 million, announced in July last year, which are:

(i) one installment of US$ 380 million, consisting of US$ 49.9 million already paid by Karoon on 07/24/2019, US$ 150 million to be paid on the closing date, and the due price adjustments. The remaining amount will be paid 18 months after the transaction’s completion; and

(ii) a contingent installment of US$ 285 million to be paid by 2026.

“This operation is aligned with the portfolio optimization strategy and the improvement of the company’s capital allocation, increasingly concentrating its resources in deep and ultra-deep waters, where Petrobras has demonstrated a significant competitive advantage over the years”, says Petrobras.

About Petrobras’ Baúna Oil Field

The Baúna field, located in the Santos Basin off the coast of São Paulo state, began operations in February 2013 and currently produces about 16,000 barrels of oil per day through the FPSO Cidade de Itajaí.

With this transaction, Karoon Petroleum & Gas Ltda will become the operator of the concession with 100% participation.