TNK-BP inks $1bn Brazil deal

City A.M. Reporter
BRAZILIAN oil start-up HRT said yesterday it signed a $1bn (£619.4m) agreement with BP’s Anglo-Russian oil joint venture TNK-BP for the sale of a stake in oil fields in the Amazon.

HRT said it would receive the funds over two years for the sale of a 45 per cent stake in 21 exploratory blocks located in the Solimoes sedimentary basin, following approval by Brazil’s energy regulator ANP.

The fields cover 48,500 square kilometres and contain around 789m barrels of oil equivalent, TNK-BP said.

Initial production is expected in 2012.

The Brazilian company said it would remain the operator of the blocks. It would first acquire the 45 per cent stake from partner company Petra Energia, and then transfer it to TNK-BP.

HRT said it has the right to receive additional payments of up to $5bn over 10 years. The payments would include compensation for past expenses and payment of 73 cents per barrel of crude oil reserves classified P2 above 500m barrels of oil equivalent.

If approved, the deal would be the largest single exploration and production foreign investment by Russia’s third-biggest oil firm, a 50-50 joint venture between BP and four Soviet-born billionaires under the name Alfa Access Renova.

“The project will give us access to significant new resources in one of the world’s fastest growing markets,” said TNK-BP’s chief executive Mikhail Fridman in a statement.

“TNK-BP is looking forward to a long and successful business partnership with HRT, as well as to new opportunities to deepen our footprint in the region.”