Petrobras Signs Agreement for Deepwater Acreage Offshore Tanzania

Petrobras signed the Shared Production Agreement for Block 6 during a ceremony held at the Ministry of Energy and Minerals' building, in Dar es Salaam, Tanzania onDecember 5th. The agreement was signed by Tanzania's minister of Energy and Minerals, Nazir Karamagi, by the general director of national oil company Tanzania Petroleum Development Corporation - TPDC, Yona Killagane, and by the international executive manager for the Americas, Africa and Eurasia, Joao Figueira, for Petrobras. Brazil's ambassador to Tanzania participated in the ceremony representing the Brazilian government.

The term of the agreement for Block 6, which covers an area of 11,099 square kilometers and is located in deep waters (500 to 3,500 meters) in the Tanzanian sector of the Indian Ocean, will be for 11 years, divided into three periods.

In the first period, of four years, Petrobras took-on the contractual commitment to undertake studies and survey geological, geochemical, and geophysical data, including 2,100 kilometers of 2D seismic data or 300 square kilometers of 3D data.

In the second and third periods, of four and three years, respectively, the commitment is to drill wells which, if successful, will allow the production period to be kicked off, the term of which is 25 years, renewable for an additional 20 years.

The rights for Block 6 were obtained through an international bidding process TPDC held in 2005. Petrobras' interest in the Block resulted from its strategy of creating a wide-ranging exploratory investigation portfolio in frontier areas.

The company's goal is to consolidate its position in a sedimentary basin with the potential of becoming a new oil province and maintain a long-term performance in this African country. Petrobras also hopes to use operational synergies, such as hiring geophysical data acquisition and processing services, among others, as required for the future exploratory drilling.

Petrobras in Tanzania

Block 6 is Petrobras' second agreement in Tanzania. The company has been operating in the country since 2004, when it signed the agreement for Block 5, also located in deep waters and where about 5,500 kilometers of new seismic data have already been surveyed. This study extends to Block 6 and gives continuity to the technical evaluation studies aimed at guiding exploratory drilling decision-making. Petrobras holds 100% of the rights for both agreements.

The African continent is among the investment priorities set forth by Petrobras' Strategic Plan. The company already has oil exploration and production activities in Angola, Nigeria, Equatorial Guinea, Tanzania, Mozambique, and in Libya.

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