CNOOC Pays $2Bn To Petrobras For Additional Buzios Stake

Brazilian oil and gas major Petrobras has received nearly $2 billion for the transfer of an additional interest in the Buzios field to Chinese state-owned energy major CNOOC.

The Búzios oilfield is in the Santos Basin, southeast offshore of Brazil, with an average water depth of approximately 2,200 meters. It is the world's largest deep-water pre-salt-producing oil field. The project is developed by the traditional deepwater pre-salt development mode which includes an FPSO and subsea facilities. At present, the daily production has reached 600,000 barrels.

CNOOC’s Brazilian arm, CNOOC Petroleum Brazil Ltda (CPBL), signed an assignment agreement with Petrobras to acquire another 5 percent interest in Búzios TOR Surplus Volume in the first half of 2022. The transaction has now been completed. The total consideration is R$10.3 billion, equivalent to $1.9 billion.

Following the transaction, Petrobras has an 85 percent stake in the PSC of the Surplus Volume of the Transfer of Rights of the Búzios field from December 1, 2022, while CPBL holds 10 percent, and CNODC the remaining 5 percent interest.

On the other hand, the stakes in the Búzios Shared Deposit, including the portions of the Transfer of Rights Agreement and the BS-500 Concession Agreement – until now owned fully by Petrobras – will be shared among the three partners with Petrobras keeping the largest share of 88.99 percent and CNOOC and CNODC holding the remaining 7.34 and 3.67 percent, respectively.

“Acquiring additional interests in Búzios oilfield further expands the company’s presence in Brazil's deepwater pre-salt region, where bountiful oil and gas resources reside. The transaction promotes the international development of the company and fortifies the resource base for the company's high-quality development. The company will adhere to the concept of win-win cooperation and work closely with the host government and project partners to promote the sustainable development of Brazil's oil and gas industry, economy, and society,” Xia Qinglong, President of CNOOC, said.

In other company-related news, Petrobras disclosed a 15 percent increase in its five-year spending plan to $78 billion. The company decided to expand planned investments between 2023 and 2027 by $10 billion compared with the 2022-2026 plan.

The company has also approved additional short-term drilling for existing projects above the company's long-term break-even of $35 per barrel. Exploration and production will make up 83 percent of the spending, with production set to increase to 3.1 million boed by 2027.

Petrobras also set a higher price for carbon – $90 per ton, from $50 before – which expands the list of projects viable for approval.

Brazilian oil and gas major Petrobras has received nearly $2 billion for the transfer of an additional interest in the Buzios field to Chinese state-owned energy major CNOOC.

The Búzios oilfield is in the Santos Basin, southeast offshore of Brazil, with an average water depth of approximately 2,200 meters. It is the world's largest deep-water pre-salt-producing oil field. The project is developed by the traditional deepwater pre-salt development mode which includes an FPSO and subsea facilities. At present, the daily production has reached 600,000 barrels.

CNOOC’s Brazilian arm, CNOOC Petroleum Brazil Ltda (CPBL), signed an assignment agreement with Petrobras to acquire another 5 percent interest in Búzios TOR Surplus Volume in the first half of 2022. The transaction has now been completed. The total consideration is R$10.3 billion, equivalent to $1.9 billion.

Following the transaction, Petrobras has an 85 percent stake in the PSC of the Surplus Volume of the Transfer of Rights of the Búzios field from December 1, 2022, while CPBL holds 10 percent, and CNODC the remaining 5 percent interest.

On the other hand, the stakes in the Búzios Shared Deposit, including the portions of the Transfer of Rights Agreement and the BS-500 Concession Agreement – until now owned fully by Petrobras – will be shared among the three partners with Petrobras keeping the largest share of 88.99 percent and CNOOC and CNODC holding the remaining 7.34 and 3.67 percent, respectively.