Petrobras To Sale Tayrona Block Offshore Colombia

(Petrobras, 27.Jul.2020) — Petrobras informs that it has started the opportunity disclosure stage (teaser), regarding the sale of its entire stake in the exploratory portion of the Tayrona Block, located in the Guajira Basin, Colombia.

The teaser, which includes key information about the opportunity, as well as the eligibility criteria for selection of potential participants, is available on the Petrobras website: https://www.investidorpetrobras.com.br/en/results-and-notices/teasers.

The main subsequent stages of the project will be reported to the market in due course.

This disclosure complies with the Petrobras’ divestment guidelines and with the provisions of the special procedure for assignment of rights to exploration, development and production of oil, natural gas and other fluid hydrocarbons, provided for in Decree 9,355/2018.

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 Tayrona Block

The Tayrona Block is located on Colombia’s northeast coast in the deep waters of the Guajira Basin. Petrobras, which is the operator of the area, holds a 44.44% stake in the concession1 through its affiliate PIB-BV, in a consortium with Empresa Colombiana de Petróleos S.A. (Ecopetrol), which holds the remaining 55.56%. Ecopetrol may exercise the pre-emption right as provided in the Joint Operating Agreement (JOA).

The concession is in the phase of the Posterior Exploration Programme 1 (PEP1) and has little exploratory commitment to be fulfilled, with the potential to prove significant volumes of gas (world class prospects) and establish position in a new frontier area. The area is similar to the discoveries on the shores of the South Atlantic and Caribbean.

1Petrobras’stake today is 40%. The absorption of the 10% of the Equinor company is in progress, proportionally by the PIB-BV (4.44%) and Ecopetrol (5.56%), which should be approved by the National Agency of Hydrocarbons.

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