Malaysia's Petronas expands upstream portfolio in Brazil

Friday, 2019-04-26 14:58:02
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Malaysian oil and gas giant Petronas expands upstream portfolio in Brazil.
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Malaysia's state-owned oil and gas firm Petronas announced Friday (April 26) that it has bought 50 percent stakes in Brazil's Tartaruga Verde from petroleum multinational corporation Petróleo Brasileiro S.A. (Petrobras).

Petronas said in a statement that the group through its subsidiary, Petronas Petróleo Brasil Ltda. (PPBL), entered into a sale and purchase agreement with Petrobras, for a 50 percent equity in the Tartaruga Verde field (BM-C-36 Concession) and its facilities, Module III of the Espadarte field.

Both fields are located in deep waters of the Campos Basin, offshore Brazil.

According to Petrobras' website, the dealing price was US$1.29 billion and will be paid by Petronas in two tranches – US$258.7 million on April 25 and US$1.03 billion on the transaction closing date.

The completion of the transaction is subject to the closing conditions, including the approval from the Brazilian Administrative Council for Economic Defense and the Brazilian National Agency of Petroleum, Natural Gas and Biofuels.

Following the completion of the deal, the PPBL will hold a 50 percent stake in the two fields, while Petrobras as the operator, holds the remaining 50 percent stake.

"The acquisition of equity in Tartaruga Verde and Module III of Espadarte fields marks an important milestone for Petronas as the company diversifies and expands its oil business portfolio in South America," said the statement.