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Petrobras says China's CNODC refrained from buying additional stake in Buzios field

SAO PAULO : Brazilian state-run oil company Petrobras said on Monday that Chinese energy group CNODC Brasil Petróleo e Gás Ltda did not express an interest in buying an additional 5per cent stake in production rights in the Buzios oilfield.

The move comes after CNOOC Petroleum Brasil Ltda (CNOOC), another Chinese oil firm, decided to exercise its option to buy a 5per cent stake in the venture for US$2.1 billion.

Buzios, which is located in the Santos Basin pre-salt area, is the largest deepwater oilfield in the world.

Given both CNOOC and CNODC decisions, Petrobras said it will hold an 85per cent stake in Buzios after closing the deal with CNOOC, which will own 10per cent. CNODC will maintain its 5per cent stake.

The production sharing contract was signed in 2019, when Petroleo Brasileiro SA - as Petrobras is formally known - bought 90per cent of the transfer of rights surplus in the Buzios field.

Each Chinese company acquired a 5per cent stake at the time and had the option to increase its shares by another 5per cent.

Buzios is one of the largest oil-producing fields in Brazil, second only to Tupi. According to oil regulator ANP's data, it pumped an average of 569,648 barrels per day in July.

(Reporting by Gabriel Araujo; Editing by Kirsten Donovan and Steve Orlofsky)

Source: Reuters

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