Petrobras informs that its Board of Directors approved the Amendment to the Transfer of Rights Agreement

Rio de Janeiro, May 21, 2019 – Petróleo Brasileiro SA – Petrobras informs that its Board of Directors approved the execution of the Amendment to the Transfer of Rights Agreement pursuant to the National Council of Energy Policy, Resolution No. 5, of April 9, 2019.

The amendment provides for the reimbursement of US$ 9.058 billion (nine billion and fifty eight million dollars) to Petrobras, the redistribution of volumes among blocks, maintaining the total contracted of 5 billion barrels of oil and gas equivalent, the adoption of a conflict resolution clause, and revision of local content requirements, for the same percentages of the 6th Round of Exploratory Blocks under the Production Sharing Regime.

Such approval, however, is conditioned to the budgetary solution for the payment of the Federal Government to Petrobras and the publication of the Ministry of Mines and Energy (MME) Ordinance on the Co-participation Agreement that does not breach the Company’s vested right over the Transfer of Rights Agreement and the conditions already negotiated in the scope of the Revision process, formalized in the draft of the amendment to the Agreement and the Ordinance MME 213/2019, which establishes the guidelines for calculating Petrobras compensation for the deferral of its cash flow in the Transfer of Rights areas.

The collegiate body also determined that the execution of the amendment is carried out before the Transfer of Rights surplus auction.

The resolution of the Board of Directors followed the decision of the Minority Committee, whose meeting minutes are published on the company’s website.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.