Petrobras Received R$ 10.3 Billion from CNOOC for an Additional 5% Stake in the Production Sharing Contract for the Búzios Field in the Santos Basin

With the Payment of R$ 10.3 Billion, CNOOC Holds 10% Stake in the Production Sharing Contract for the Búzios Field, Located in the Santos Basin. Petrobras Remains the Main Operator and Producer on Site, with 90% Stake.

The national oil and natural gas production market is quite active this Saturday, (11/26). This is because the company CNOOC Petroleum Brasil paid the state-owned Petrobras a total of R$ 10.3 billion to acquire an additional 5% stake in the production sharing contract for the Búzios Field, located in the Santos Basin. With this, the oil company will have a 10% stake on site, now investing in the growth of the national fuel market.

CNOOC Paid Petrobras R$ 10.3 Billion for the Completion of the Transaction for 5% Stake in the Production Sharing Contract for the Búzios Field

Investments in the expansion of oil and natural gas production areas in Brazil have become increasingly common in the national market.

The giant company in the sector, CNOOC, announced the purchase of an additional 5% in the Production Sharing Contract for the Excess Volume of the Onerous Assignment of the Búzios Field, an important area of the Santos Basin led by Petrobras.

To this end, the company made a payment of R$ 10.3 billion to the state-owned company, which held the rights to the 5% stake on site.

According to the Brazilian state-owned company, the amount already includes the adjustments provided for in the contract, following the fulfillment of all precedent conditions. “The completion of the transaction is subject to the signing of the Addendum to the Production Sharing Contract by the Ministry of Mines and Energy (MME),” Petrobras said in a market statement.

After the completion of the transaction, Petrobras will hold a total of 85% stake in the production sharing contract for the Búzios Field, while CNOOC will have 10%, and CNODC will hold 5%.

In the Onerous Assignment auction held in November 2019, the Brazilian state-owned company formed a consortium with CNOOC and CNODC to acquire the excess volumes from the Búzios field.

However, CNOOC expressed interest in expanding the initial participation contract in the Santos Basin area, which was only 5%.

Learn More About CNOOC

CNOOC International, the international division of CNOOC Limited, is a global energy company with operations in Asia, Africa, the Americas, the Middle East, and Europe. Its successful growth as an upstream producer of oil and gas has been achieved by consistently finding and developing world-class assets.

Its business focuses on safely exploring and producing from conventional, unconventional offshore assets, and oil sands.

As part of the CNOOC group of companies, which spans the entire energy supply chain, the size and capacity of the company create a competitive advantage that ensures long-term value delivery.

Get to Know the Búzios Field

With estimated reserves of 10 billion barrels, according to projections from consulting firm Wood Mackenzie, Búzios is among the seven largest offshore fields in the world. Just to give an idea of the size of Búzios, Brazil’s total reserves today are 15 billion.

Furthermore, it is a field that is already in production, with no geological risk. In other words, its characteristics and potential are already known.

Discovered in 2010, Búzios already has 54 wells drilled by Petrobras and four platforms in operation.