Deals this week: Petrobras, Hibiscus Petroleum Berhard, PIF

6 April 2018 (Last Updated April 6th, 2018 09:31)

Brazilian integrated oil and gas company Petroleo Brasileiro (Petrobras) plans to divest its 50% non-operated working interest each in the BM-C-36 and Espadarte concessions in Campos Basin, offshore Brazil.

Brazilian integrated oil and gas company Petroleo Brasileiro (Petrobras) plans to divest its 50% non-operated working interest each in the BM-C-36 and Espadarte concessions in Campos Basin, offshore Brazil.

The BM-C-36 concession contains the Tartaruga Verde development field, while the Espadarte concession includes the Espadarte Module III field.

The company concurrently plans to divest 100% interest in the BM-S-40 concession in the Santos Basin offshore Brazil. The BM-S-40 concession comprises the Bauna oil field in water depths between 230m and 295m.

Bank of America Merrill Lynch is the financial advisor to the company for the transaction.

Hibiscus Petroleum Berhard, through its subsidiary SEA Hibiscus, has acquired 50% interest in the 2011 North Sabah production sharing contract (PSC) and the joint operating agreement (JOA) from Shell.

The North Sabah PSC includes 20 offshore platforms spanning across four producing fields in South China Sea offshore Sabah, Malaysia, and the Labuan Crude Oil Terminal in the Labuan Federal Territory, Malaysia.

“The sovereign wealth fund of Palestine Investment Fund (PIF) plans to offer a 45% stake in the Gaza Marine development licence to an international operator.”

The deal includes operating and managing rights of the assets within the North Sabah PSC until 2040.

Hibiscus Petroleum Berhard is a Malaysian oil and gas exploration and production company, while Shell is an integrated oil and gas company located in the Netherlands.

The sovereign wealth fund of Palestine Investment Fund (PIF) plans to offer a 45% stake in the Gaza Marine development licence to an international operator.

The Gaza Marine development licence is a natural gas asset located 30km offshore Gaza, Palestine, in the Mediterranean Sea in 603m of water and comprises 1tcf of gas reserves.

The offer follows a divestment of Royal Dutch Shell’s (Shell) 90% stake in the licence through its subsidiary BG Great Britain Limited.

PIF and CCC will each hold 27.5% of the development rights in the licence, while the remaining 45% interest will be offered to an international operator, as part of the new structure.

Shell is an oil and gas company based in the Netherlands, while BG Great Britain Limited is an exploration and production company based in the UK.

The transaction is expected to strengthen PIF’s hold as an energy exporter.