Brazil's Petrobras May Buy BG Stake in Presalt Area -Report

SAO PAULO (Dow Jones Newswires), Oct. 14, 2011

Petrobras plans to buy a stake held by BG Group in Brazil's offshore presalt reserve, Brazilian business daily Brasil Economico reported Friday.

Recently, international press reports indicated that BG Group was negotiating with China Petroleum & Chemical Corp., or Sinopec, to sell a portion of its stake in Brazilian oil blocks BMS-9, BMS-10 and BMS-11. Petrobras has offered to buy the BG stake in order to contain the advance of Chinese interests in the area, the newspaper reported.

"All hypotheses are possible," Petrobras President Jose Sergio Gabrielli told the newspaper. "Where we have a farm-out right, we will exercise it." So-called farm-out rights give companies a preferential right to buy oil-block stakes from other companies.

Gabrielli noted that Petrobras was not informed by BG Group of that company's intention to sell a portion of its stakes in Brazil.

"We don't know about their intentions; however, everything that is in the presalt area is interesting for us," Gabrielli said.

Petrobras press officials were not immediately available for comment.

Copyright (c) 2011 Dow Jones & Company, Inc.

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