Petrobras sells Nigeria assets to Africa Oil Corp

On 31 October, a subsidiary of Petrobras signed a Sale and Purchase Agreement (SPA) for the full sale of its 50% interest in Petrobras Oil & Gas BV (POGBV) to Petrovida Holding BV, a company formed by the partners Vitol Investment Partnership II Ltd (50%), Africa Oil Corp (25%) and Delonex Energy Ltd (25%). The consideration is US$1.407 billion. The upstream assets of POGBV are in deepwater Nigeria and include an 8% working interest in OML 127, which contains a unitised 62.5% of the producing Agbami field, operated by Chevron, and a 16% working interest in OML 130, operated by Total which contains the producing Akpo field; and the Egina field, expected onstream at the end of 2018. Gross production of 368,000 b/d is expected to increase to over 500,000 b/d by the end of 2019. The deal is the largest in Nigeria since 2014, but is contingent on the consortium fulfilling its funding obligations on the transaction and Nigerian ministerial consent.