Singapore — Malaysia's Petronas said Friday it bought a 50% equity stake in deepwater concessions in the Campos Basin in offshore Brazil from Petroleo Brasileiro S.A. or Petrobras.
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The deal represents Petronas' efforts to boost its upstream reserves and production, growing cash flows and shrinking domestic output. A price was not disclosed.
Petronas said its subsidiary Petronas Petroleo Brasil Ltda entered into a sale and purchase agreement with Petrobras for a 50% equity in the Tartaruga Verde field (BM-C-36 Concession) and its facilities, and Module III of the Espadarte field, both located in deep waters of the Campos Basin.
"The completion of the transaction is subject to the closing conditions, including the approval from the Brazilian Administrative Council for Economic Defense and the Brazilian National Agency of Petroleum, Natural Gas and Biofuels," Petronas said in a statement.
Petronas will hold a 50% stake in the assets, while Petrobras will hold the rest and be the operator. It said the acquisitions will allow it to expand its oil business portfolio in South America.
Southeast Asian national oil companies are expected to play a role in merger and acquisition activity in 2019-2020, and their hunt for assets will spill into to other regions. Petronas has ambitions to be a global energy player with its LNG projects in Canada and shale gas assets in Argentina, and Thailand's PTTEP is also looking to boost its portfolio.
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