Petrobras Signs Buzios Co-participation Agreement

Source: www.gulfoilandgas.com 6/12/2021, Location: South America

Petrobras informs that it signed with Pre-sal Petroleo SA (PPSA) and partners CNODC Brasil Petroleo e Gas Ltda. (CNODC) and CNOOC Petroleum Brasil Ltda. (CNOOC) the Buzios Co-participation Agreement, which will regulate the coexistence of the Transfer of Rights Agreement and the Transfer of Rights Surplus Production Agreement for the Buzios field, in the Santos Basin pre-salt.

Negotiations began soon after the tender, which took place on November 6, 2019, in which Petrobras acquired 90% of the exploration and production rights of the surplus volume of the Transfer of Rights in the Buzios field, in partnership with CNODC (5%) and CNOOC (5%). Together, the parties and PPSA defined the Field Development Plans, including production curve estimates, and using the assumptions of oil and gas prices, discount rate and cost metrics established in MME Ordinance No. 213/2019 , lining up the following participations:

Thus, the total compensation amount due to the Assignment Agreement (100% Petrobras) for the Production Sharing Agreement is US$ 29.4 billion, which will be recovered as Oil Cost by the contractors. As Petrobras has a 90% stake in the consortium of this contract, the amount referring to the 10% stake of the partners CNOOC and CNODC, in the amount of US$ 2.94 billion, will be received in cash by Petrobras on the effective date of the Agreement.

With the coming into force of the Agreement, the participation in the Buzios deposit will be 92.666% of Petrobras and 3.667% of each of the partners.

The effectiveness of the Agreement is subject to approval by the National Agency for Petroleum, Natural Gas and Biofuels (ANP), followed by the payment of the CNOOC and CNODC part of the compensation to Petrobras.

The estimates of participation and compensation presented are based on the effective date of the Agreement on 09/01/21, and, as soon as the date is confirmed with the approval of the ANP, the necessary adjustments will be made according to the accumulated production and investments made until that date.


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