May 6, 2020
Petrobras received approval from the regulatory authority for the acquisition of a slice of Norwegian Equinor’s operations in two exploration blocks in the Espírito Santo Basin.
The Administrative Council for Economic Defense (Cade) gave unrestricted endorsement to the businesses, which involve the ES-M-598 and ES-M-673 blocks, according to an order published in the Official Gazette this Wednesday.
In both assets, Equinor holds a 40% stake and is leader and operator in partnership with Petrobras (40%) and Enauta. After the deals, Petrobras will have 80% in both concessions.
The companies told Cade that the operations mitigate Equinor’s exposure to “geological and financial risk”, while Petrobras “aims to increase its percentage in the referred concession, where it sees geological merits”.
In the transaction for block ES-M-598, the deal involves replacement of guarantees by Petrobras, regarding compliance with the minimum exploratory program, and a payment of $44.7 million by Equinor to the Brazilian state-owned company, according to Cade’s opinion.
Cade’s documents do not detail the terms involved in the acquisition of block ES-M-673.