Petrobras On Sale Tartaruga Verde And Module III

(Petrobras, 30.Dec.2019) — Petrobras following up on the press release disclosed on 27 December 2019, reaffirms that the total value of the sale of 50% of exploration and production rights of the Tartaruga Verde field (concession BM-C-36) and Module III of the Espadarte field to Petronas Petróleo Brasil Ltda was $1,293.5 million.

Petrobras received $258.7 million as deposit on the signature date, 25 Apr. 2019, and $691.9 million on the closing date, 27 Dec. 2019, the latter portion having been adjusted according to the profit earned of about $343 million by Petrobras in the period between 1 January 2019 and 27 December 2019.

The profit in this period, referring to the 50% interest object of the transaction, is Petronas’ economic benefit, since the base date of the transaction was 1 Jan. 2019 and marks the beginning of the cash flow considered for the economic evaluation of the asset and for the preparation of the purchase proposal by Petronas. This type of price adjustment is a common practice on merger and acquisition transactions.

The Tartaruga Verde field started its production on 22 June 2018, and the average production in 2019 (until 30 November 2019) was about 93.9 thousand barrels per day (b/d) of crude oil and 1 million m3/day (MMcm/d) of natural gas.

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