The Chinese will pay Petrobras $2.94 billion for the Búzios field – Money Times

a Petrobras (PETR3; PETR4) they must receive from their Chinese partners in the field of Búzios, in pre-salt $2.94 billion refers to total compensation for the Santos Basin Investments Provided by Brazilian assets, as a result of the joint sharing agreement signed the day before, the company said the day before.

Petrobras claims that B thatzios is the largest field for petroleum In the deep waters of the world. In related fact, the company indicated more than 11 billion barrels of oil equivalent (boe) are recoverable in assets.

The agreement became necessary after Petrobras, in alliance with CNODC and CNOOC partners, auctioned surplus oil from the Búzios rights transfer contract in 2019, under the sharing scheme. The oil company won 90% of volumes, while the Chinese captured 5% each.

The companies agreed in the agreement that the recoverable volume of the rights transfer agreement is 3.15 billion barrels of oil equivalent (boe), 26.2% in the joint sharing area, while the volume of the production sharing agreement surplus is 8.148 billion. Bo, or 73.8% of the area.

The percentages were calculated based on the estimated volumes to be produced from the date of the agreement.

Thus, the total amount of compensation due to the Transfer of Rights Agreement, which belongs to Petrobras 100%, under the Production Sharing Agreement, is $29.4 billion, which will be recovered as oil cost by the contractors.

“Because Petrobras has a 90% stake in the consortium for this contract, the amount indicating a 10% stake in partners CNOOC and CNODC, valued at $2.94 billion, will be received in cash by Petrobras on a start date,” Petrobras said.

With the agreement coming into effect, Petrobras will own 92.666% of the Buzios deposit, while each Chinese company will own 3.667%.

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

The oil company also said that the participation and compensation estimates provided are based on the effective date of the agreement on September 1, 2021, and once the date is confirmed with the approval of the National Ports Agency, the adjustments will be made according to the accumulated production and investments made so far.

Petrobras also reports that it has signed a contract with the joint venture formed by Saipem and DSME for $2.3 billion to supply the P-79 platform, the eighth unit to be installed in the Búzios field.