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PetroRio acquires 80 per cent of Bijupirá and Salema fields offshore Brazil from Shell

23rd January 2015

PetroRio, the new brand of HRT Participações em Petróleo, has signed a purchase and sale agreement to acquire 80 per cent of the rights and obligations of the concession contracts for the Bijupirá and Salema Fields with Shell Brasil Petróleo, with Petrobras retaining the remaining 20 per cent

PetroRio, the new brand of HRT Participações em Petróleo, has signed a purchase and sale agreement to acquire 80 per cent of the rights and obligations of the concession contracts for the Bijupirá and Salema Fields with Shell Brasil Petróleo, with Petrobras retaining the remaining 20 per cent
The Bijupirá and Salema Fields, located in water depths of 480 and 850 metres, are located in the Pre-Salt polygon, just 80-kilometres northeast of the Polvo Field, PetroRio’s first production asset

The transaction also involved the acquisition of, among other assets, the ship FPSO Fluminense, used in the production process of both fields, with storage capacity for 1.3 million barrels of oil. Only upon approval from the regulatory agencies, the company will become the operator of the fields.

With this transaction, PetroRio will become one of the largest independent producers in the country, operating an average of more than 30,000 barrels of oil per day. This represents a three-fold increase in current production and positions PetroRio as one of the most important emerging companies in Brazil’s oil industry.

The Bijupirá and Salema Fields, located in water depths of 480 and 850 metres, are located in the Pre-Salt polygon, just 80-kilometres northeast of the Polvo Field, PetroRio’s first production asset, generating important synergy gains between the operations.

The licences cover an area of 40 square kilometres and daily production totals 22,000 barrels of light oil and 325,000 cubic metres of associated gas, equivalent to 24,000 boe/day.

The oil extracted from the fields is light from 28º to 31º API.

The acquisition of the Bijupirá and Salema fields will be executed with a portion of the funds raised through the 1st Convertible Debenture Issuance and with a structured financing operation led by Glencore Ltd., a wholly owned subsidiary of Glencore PLC.

The completion of the purchase and sale transaction between PetroRio and Shell is subject to certain precedent conditions, including approval of the assignment of rights by Brazil’s Council for Economic Defense (CADE) and the National Agency of Petroleum, Natural Gas and Biofuels (ANP).

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