MercoPress. South Atlantic News Agency

Petrobras completes global presence by acquiring stake in Australian block

The Brazilian corporation is a world leader in offshore deep water oil exploration

Brazilian government managed energy giant Petrobras announced it acquired a 50% stake in an exploration block in Australia with significant natural gas potential. Petrobras acquired the stake from MEO Australia for 39 million USD.

But Petrobras has the right to take over as operator once the drilling of the first well – set to begin in the second half of this year – is concluded.

Under the terms of the agreement, Petrobras will invest a maximum of 41 million USD in the drilling of the first well, according to a statement by the Brazilian company.

If gas is discovered, Petrobras will carry MEO’s share of the cost of drilling two follow-up wells – up to 62 million per well – and pay MEO an additional 31.5 million bonus for its stake in the offshore block, located in Australia’s North Carnarvon basin.

The WA-360-P block which covers a 1,200-square-kilometer area and is located at a depth of 500 meters, is near a region where significant discoveries of natural gas have been made.

MEO Australia has been working on this block for the past five years and has already determined its natural gas potential through three-dimensional seismic studies, Petrobras said.

This acquisition gives the Brazilian company a presence in Oceania, the only region of the world where it had no investments until now.

The deal will increase the gas reserves held by Petrobras and “reinforce (the company’s) global and integrated position in the liquefied natural gas market,” Petrobras’ statement read.

Petrobras which is Latin America’s second-largest oil company after Venezuela’s PDVSA and operates in more than two-dozen countries in the Americas, Africa, Asia and Europe, produced an average of 2,560,000 barrels of oil and natural gas per day in February.

Shares of Petrobras, a global leader in deepwater oil exploration and production, trade on the Sao Paulo, New York, Madrid and Buenos Aires stock exchanges, but the Brazilian government retains control through a golden share.