Petrobras and BTG Pactual have entered into a US$1.53bn binding agreement to establish a 50-50 joint venture (JV) for oil and gas exploration and production (E&P) in Africa
The JV will be formed with BTG Pactual acquiring 50 per cent shares issued by Petrobras Oil & Gas BV.
The partnership between Petrobras, a Brazilian oil and gas company, and BTG Pactual, an investment bank, will be the preferential vehicle of the two parties for new energy investments in the continent, according to industry sources.
Once the corporate restructuring is concluded, the operation will involve JV firm’s branches located in Angola, Benin, Gabon and Namibia, as well as the subsidiaries Brasoil Oil Services Company (Nigeria) Limited, Petroleo Brasileiro Nigeria Limited and Petrobras Tanzania Limited.
According to Petrobras, the operation represents an important step for its divestment programme, allowing for the expansion of its operations in Africa and the sharing of investments required for expansion and development of its reserves.
Petrobras is currently trying to sell oilfields, exploration rights, refineries and other assets in Africa, USA, Japan, Argentina, Peru and other countries to help finance a US$237bn, five-year investment plan, Reuters reported.
For BTG Pactual, the operation represents a step toward investment opportunity generation in the African continent and in the oil and gas segment, in accordance with the growth strategy of its asset and investment management activities, company sources said.
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