Petrobras sells upstream assets

Petrobras sells upstream assets

M&A Energy Gas Brazil Europe United States Australia

Brazil's Petrobras said it has earned around $1.5bn from the sale of two upstream assets in shallow waters to companies from Great Britain and Australia.

The state-owned energy company sold the Pampo and Enchova clusters in the Campos Basin to Trident Energy, a London-based oil and gas company backed by the US private equity firm Warburg Pincus.

Petrobras also sold the Baúna field in the Santos Basin to Australia's Karoon Energy, it said in a statement.

Trident agreed to spend $851m for Pampo and Enchova with $53.2m at signing and $798 at closing, subject to adjustments. Trident will operate the two concessions with 100% stakes, Petrobras said.

Karoon offered to pay $665m for Baúna, although the price could go down by $140m to $200m by closing, the company said in a presentation. Karoon added that it expects to close the transaction in the first half of 2020.

The Australian firm said it has secured $250m in financing from ING to fund part of the purchase. It will cover the rest with $228m in cash reserves and incoming cash flows.

Karoon also intends to sell more shares in the company to raise money for the acquisition, it said in the presentation.

Baúna began production in 2013 and now produces 20,000 barrels of oil per day, according to Petrobras.

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