Brazilian state-controlled oil company Petrobras revealed in a securities filing that China National Offshore Oil Corporation (CNOOC) is interested in acquiring an additional 5% stake in production rights for the giant Buzios pre-salt field in the Santos basin for $2.08 billion.
Petrobras said in the filing that it did not expect to see any impact on the 2021 production target until after the transaction closes.
The effectiveness of this transaction is subject to the approvals by the Administrative Council for Economic Defence, the National Agency of Petroleum, Natural Gas and Biofuels, and the Ministry of Mines and Energy.
The news comes a little more than three months after the Brazilian giant signed a long-awaited co-operation agreement worth nearly $3 billion with CNOOC and the China National Oil & Gas Exploration & Development Corporation (CNODC).
The Chinese groups had acquired the rights to produce surplus volumes from Buzios in November 2019. Petrobras held a 90% and CNOOC and CNODC a 5% interest each were awarded a production sharing contract for the area for a fixed signature bonus of $17.1 billion.
The parties reached an understanding in June that saw CNOOC and CNODC pay a combined $2.94 billion to Petrobras to cover sunk costs and compensation for future production from Buzios.
In addition to its position in the Buzios field, CNOOC also holds a 10% working interest in the Mero, the Alto de Cabo Frio Oeste and Pau Brasil blocks, all located in the Santos basin. The company also holds a 100% interest in the deep-water Block 592 of the Espirito Santo basin.
