(EnergyAsia, May 22 2013, Wednesday) — Continuing its international expansion, Malaysia’s state energy firm Petronas said it will pay US$850 million for a 40% share in two blocks of Brazil’s offshore Tubarao Martelo oil field.
Petronas, which only recently acquired Canada’s Progress Energy for C$5.9 billion, will acquire the blocks from Brazilian producer OGX Petroleo e Gas Participacoes SA. The blocks are located in the shallow waters of the Campos Basin 95km off the coast of Rio de Janeiro state.
The Malaysian firm has the option to acquire a 5% stake in OGX for a price of 6.30 reais per share from founder and controlling shareholder Eike Batista who is restructuring the company.
Brazil is considered to be one of the world’s top holders of hydrocarbon reserves, with about 145 billion barrels of oil reserves. The proposed acquisition will mark Petronas’s entry into Brazil’s upstream sector.
Law firm Herbert Smith Freehills said it advised OGX on the sale while Bank of America Merrill Lynch provided exclusive financial advice to Petronas.