Rosneft Brazil ups stake in Solimoes project, takes over operatorship
MOSCOW. Nov 25 (Interfax) - Rosneft subsidiary Rosneft Brazil has signed an agreement and related preliminary documentation with HRT subsidiary HRT O&G to acquire additional 6% in the Solimoes project in Brazil, Rosneft said in a statement.
This will lead to Rosneft Brazil receiving 51% control and taking over the operatorship in the joint venture in the Solimoes basin. The companies agreed that Rosneft and HRT will continue exploration activities with respect to Solimoes project and also agreed the sale of four heli-transportable rigs to Rosneft.
The documents were signed in Rio de Janeiro in the presence of Igor Sechin, Rosneft President and Chairman of the Management Board, and Milton Franke, CEO of HRT.
The parties have agreed key terms for each of the abovementioned transactions and expect to sign definite agreements by the end of January 2014. The completion of the sale and purchase transaction between the companies shall be subject to the fulfillment of certain conditions, including the approval by the Brazilian National Petroleum, Natural Gas and Biofuels Agency (ANP).
"We are pleased to increase our stake in promising Solimoes project and hope to continue fruitful and mutually beneficial cooperation with our partners from HRT as part of this project implementation," Sechin said.
Rosneft received a 45% stake in the concession for 21 prospects in the Solimoes basin when it bought TNK-BP in March this year. Its partner in the project is HRT.
The project brings the Russian company potential reserves amounting to 789 million barrels of oil equivalent, according to an audit by Degolyer&MacNaughton. Capital investment will total an estimated $9.2 billion, or about $14 billion including pipeline construction costs. TNK-BP and HRT initially expected Solimoes to be an oil project. However, because only gas has been detected so far, the partners are studying options for monetizing that resource.
Prior to its acquisition by Rosneft, TNK-BP had said it would make a decision on monetizing the gas in the third quarter of 2013.
HRT relinquished the licenses to two of the Solimoes blocks in August so the project has 19 left.
