Fossil Energy – Buzios Field
CNOOC has completed the buy of additional interest in Petrobras’ Buzios field located in the Santos Basin pre-salt area offshore Brazil.
CNOOC and Petrobras have already, together with the Brazilian arm of the China National Oil and Gas Exploration and Development Company (CNODC), entered into a Buzios Coparticipation Agreement last year.
Under the deal, Petrobras received a cash payment of $2.9 billion for the obligations of its partners in late August 2021.
CNODC and CNOOC then had up to 30 days to express their interest in exercising the option to purchase an additional portion of 5 percent each in the Production Sharing Contract (PSC) for the Surplus of the Transfer of Rights.
At the time Petrobras held 90 percent of the rights to explore and produce oil at Buzios which is considered the largest deepwater oilfield in the world. It was acquired by the state-run oil company in 2019. CNOOC and CNODC also bought a 5 percent stake each in the field.
After the two Chinese companies entered the field, they both had then had up to 30 days to express their interest in exercising the option to purchase an additional portion of 5 percent each in Buzios. CNOOC was the only company to express such an interest.
Petrobras now stated that it signed a contract with CNOOC for the assignment of an additional 5 percent of its interest in the Production Sharing Contract of the Transfer of Rights Surplus for the Buzios field. The amount to be received in cash by Petrobras at the closing of the operation will be $2.12 billion