Petrobras to take over BP’s stakes in 6 blocks off Brazil

Brazilian oil and gas giant Petrobras has signed agreements with BP to take over BP’s entire stakes in six blocks, located in the ultra-deepwater in northern Brazil.

Source: Petrobras

According to Petrobras’ update on Tuesday, the blocks are located approximately 120 km from the state of Amapá, in a high-potential exploratory frontier on the Brazilian equatorial margin.

The six blocks in the agreements are FZA-M-57, FZA-M-59, FZA-M-86, FZA-M-88, FZA-M-125, and FZA-M-127.

They were acquired by the consortia in the 11th Bidding Round of Blocks of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), which occurred in 2013.

Blocks FZA-M-57, FZA-M-86, FZA-M-88, FZA-M-125 and FZA-M-127 are owned by Petrobras (30 per cent), Total (40 per cent), and BP (30 per cent).

Petrobras had already signed an agreement to assume the operation and the totality of Total’s stakes in these contracts, still subject to ANP approval, as reported in September 2020.

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The FZA-M-59 block belongs to the consortium involving Petrobras, with a 30 per cent stake and operator, and BP (70 per cent).

The agreement with BP will allow Petrobras to hold 100 per cent interest in these six blocks. The completion of the transfer is still subject to regulatory approvals.

Petrobras noted that this transaction is in line with its 2021-2025 Strategic Plan, which foresees new exploratory fronts outside the Southeastern basins, and is part of the company’s portfolio management process, prioritizing investments in assets in deep and ultra-deepwaters.