Petrobras on advance in the sale of the Baúna field

\ July 24, 2020

Petróleo Brasileiro S.A. – Petrobras, following up on the release
disclosed on July 24, 2019, informs that, due to the impact caused by the COVID-19 pandemic and the difficulty to address the previous conditions initially defined, in common agreement with Karoon Petróleo & Gás Ltda (Karoon), a subsidiary of Karoon Energy Ltd, defined adjustments to the terms of the contract for the sale of its entire interest in the Baúna field (BM-S-40 concession area), located in shallow waters in the Santos Basin.

The adjustments under the contract took into account the extension of the term to address the conditions precedent to the closing and the payment definition of the agreed amount, of US$ 665 million, in two installments:

(i) a installment of US$ 380 million, consisting of US$ 49.9 million already paid by Karoon on 7/24/2019, US$ 150 million to be paid at the closing date with the price adjustments. The remaining amount will be paid in 18 months after the closing and;

(ii) a contingent installment of US$ 285 million to be paid until 2026.
This transaction is in line with the portfolio optimization strategy and the improvement of the company’s capital allocation, increasingly concentrating its resources in deep and ultra-deep waters, where Petrobras has demonstrated great competitive edge over the years.
About the field

The Baúna field, located in the Santos Basin off the coast of the state of São Paulo, started its operations in February 2013 and has a current output of about 16,000 barrels of oil per day through the FPSO Cidade de Itajaí. With this transaction, Karoon Petróleo & Gás Ltda will become the operator with 100% stake.

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