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Brazilian company seeks to sell stake in Namibian oil blocks

04th April 2012

Fledgling Brazilian oil company, HRT, is looking to sell a slice of its share in an oil rich west African site

Namibia holds operating stakes in offshore 10 blocks

Brazilian oil company, HRT Participacoes em Petroleo SA has begun talks with potential partners to sell a stake in the company's offshore exploration blocks in Namibia.

The decision confirms the company’s decision to farm-out stakes in owned blocks, amid efforts to transfer the operating rights of the Solimões blocks in the Brazilian Amazon to Russian oil company, TNK-BP.

Shares of the company have sunk 66 per cent in the past year, reflecting rising exploration and production risks and uncertainty in strategy regarding the Namibia blocks.

But the company could earn as much as USD 1bn in the proposed transactions, according to an Investment Securities analyst.

Namibia holds operating stakes in 10 blocks and minority shares in two others in the Walvis, Orange and Namibe basins.

HRT expects to start an offshore Namibia drilling campaign in the fourth quarter of 2012 or first quarter of 2013, the company said.