Petronas wraps up acquisition of two deepwater fields in Brazil

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Malaysian oil and gas company Petronas announced on Saturday the completion of the transaction for the acquisition of 50 per cent equity in the Tartaruga Verde producing field (BM-C-36 Concession) and Module III of the Espadarte field (Espadarte Concession), both located in deep waters of the Campos Basin, offshore Brazil.

PPBL signed a Sales and Purchase Agreement (SPA) with Petróleo Brasileiro S.A. (Petrobras), Brazil’s petroleum multinational corporation on April 25 this year. Petrobras, the Operator, holds the remaining 50 per cent equity.

The signing of the closing agreement to mark the completion of the acquisition was held in Rio De Janeiro, Brazil, on December 27.

Petronas Executive Vice President & Chief Executive Officer of Upstream, Adif Zulkifli said, “The completion of the acquisition of Tartaruga Verde and Module III of Espadarte, as well as the three exploration blocks won in the recent bid rounds in Brazil is testament to PETRONAS’ steady progress in expanding our oil business in South America.”

“We also look forward to this new partnership with Petrobras to meet Brazil’s energy aspirations,” he added.

Aside from expanding its portfolio in South America, Petronas said it has also signed six new Production Sharing Contracts (PSC), of which four PSCs are in Malaysia and two in Gabon, in addition to the acquisitions of two offshore blocks in Egypt.

This is in line with the company’s three-pronged growth strategy to secure opportunities in prolific basins in expanding its core business for future cash generation.