Petrobras And Murphy Conclude Formation Of GOM Joint Venture

(Petrobras, 3.Dec.2018) — Petrobras, following up on the release disclosed on October 10, 2018, concluded the operation that has resulted in the formation of a joint venture company (JV), of which Murphy Exploration & Production Company has an 80% stake, while Petrobras America Inc (PAI) holds the remaining 20% stake, with the contribution from both companies of all of their producing oil and natural gas assets located in the Gulf of Mexico.

In the context of the JV, PAI and Murphy also signed an“LLC Agreement, a Master Service Agreement (“MSA”) and a Transition Services Agreement (“TSA”).

The deal closed with Murphy’s net payment of $795 million to PAI, after price adjustments provided for in the contract. The agreement also provides for contingent payments of up to $150 million and investments of up to $50 million covering costs for production development in the St. Malo field, to be made by Murphy.

The transaction is aligned with Petrobras’ Business and Management Plan, which provides for a continuous portfolio management. In addition to the cash inflow, the formation of the JV with Murphy, a company recognized for its expertise in the industry, results in a final portfolio with a better risk-return ratio for the company.

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