Petrobras and Murphy conclude formation of a joint venture in the Gulf of Mexico

Rio de Janeiro, December 3, 2018 – Petróleo Brasieiro S.A. – Petrobras, following up on the release disclosed on 10/10/2018, announces that it concluded the operation that has resulted in the formation of a joint venture company (“JV”), of which Murphy Exploration & Production Company (“Murphy” ) has 80% stake and Petrobras America Inc (“PAI”) 20% stake, with the contribution from both companies of all of their producing oil and natural gas assets located in the Gulf of Mexico.

In the context of the JV, PAI and Murphy also signed an“LLC Agreement, a Master Service Agreement (“MSA”) and a Transition Services Agreement (“TSA”).

The deal closed  with Murphy’s net payment of US$ 795 million to PAI, after price adjustments provided for in the contract. The agreement also provides for contingent payments of up to US$ 150 million and investments of up to US$ 50 million covering costs for production development in the St. Malo field, to be made by Murphy.

The transaction is aligned with Petrobras’ Business and Management Plan, which provides for a continuous portfolio management. In addition to the cash inflow, the formation of the JV with Murphy, a company recognized for its expertise in the industry, results in a final portfolio with a better risk-return ratio for the company.

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