Brazilian state-owned firm Petrobras has signed an agreement to sell its 50% stake in its Nigerian oil and gas exploration joint venture (JV) with BTG Pactual E&P to a Vitol-led consortium for a total consideration of $1.53bn.
BTG Pactual will continue to hold its 50% stake in the Petrobras Oil & Gas (POGBV) JV, which owns interests in two blocks that contain three fields located more than 100km off the coast of Nigeria.
The consortium buying the assets comprises Vitol Investment Partnership II (50%), Africa Oil (25%) and Delonex Energy (25%).
The assets owned by the POGBV include an 8% stake in block OML 127, which contains the Agbami production field; and a 16% stake in block OML 130 comprising the Egina and Akpo fields.
Egina is in the final stage of development, with production start-up expected by the end of this year.
Discovered in 1998, the Agbami field is operated by Chevron affiliate Star Deep Water. Other partners include Equinor and Nigerian national oil company NNPC.
Petrobras’ share in the current production of the assets is 21,000boe/day.
Vitol CEO Russell Hardy said: “We are pleased and proud to add this significant upstream asset to our infrastructure and downstream Nigerian investments. POGBV has a strong non-operated portfolio, managed by Chevron and Total, and which represents around 20% of Nigerian production. Vitol looks forward to growing and investing in Nigeria.”
The consideration comprises a cash payment of $1.4bn and a deferred payment of up to $123m.
The completion of the sale is subject to certain closing conditions, including approvals by relevant Nigerian Government bodies.
Petrobras noted that the transaction is part of its $21bn divestment programme for 2017 and 2018.
Earlier this week, an unnamed source told Reuters that the oil company intends to garner an additional $20bn through asset sales through the end of next year.