Brazil’s Petroleo Brasileiro SA has announced that it entered into a Share Purchase Agreement (SPA) to sell a 50 percent ownership interest in Petrobras Oil and Gas (POGBV) for $1.407 billion to a consortium led by Vitol.
Meanwhile, Brazilian investment bank, BTG Pactual E&P B.V will continue to own the remaining 50 percent of Petrobras Oil and Gas BV, also known as Petrobras Africa. The transaction is subject to customary conditions precedent.
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Africa Oil Corp, Delonex Energy Ltd. and Vitol Investment Partnership II Ltd. however own 25 percent, 25 percent and 50 percent respectively of the consortium that was formed to acquire the stake in POGBV.
Russell Hardy, CEO, Vitol said: “Vitol has a long history of investing in Nigeria’s energy sector. We are pleased and proud to add this significant upstream asset to our infrastructure and downstream Nigerian investments. POGBV
has a strong non-operated portfolio, managed by Chevron and Total and which represents circa 20 percent of Nigerian production. Vitol looks forward to continuing to grow and invest in Nigeria.”
Meanwhile, the primary assets of POGBV are an indirect 8 percent interest in Oil Mining Lease (OML) 127, which contains the producing Agbami Field, operated by affiliates of Chevron Corporation, and an indirect 16 percent interest in OML 130, operated by affiliates of TOTAL S.A., which contains the producing Akpo Field and the Egina Field, which is expected to commence production by the end of 2018.
Current production of 368,000 barrels per day is anticipated to increase to over 568,000 barrels per day by the second half of 2019, as compiled from Bloomberg terminal.
Endurance Okafor
