Rosneft Brasil and PetroRio has officially announced the signing of the Rosneft Brasil transaction to acquire PetroRio’s 55% in the Solimões project. Closing will follow formal approval of the transaction by ANP (Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis – Brazil) which is anticipated in mid 2015. The transaction completes agreements reached between Rosneft Brasil and HRT in 2014 in July 2014.
The finalization of the transaction will lead to Rosneft Brasil receiving 100% control and full operatorship in the Solimões project to the company.
The transaction totaled USD 55 million and it does not encompass the purchase of four heli-transportable drilling rigs owned by HRT Netherlands B.V. The decision to carve the named purchase out of the deal was taken by Rosneft Brasil upon reviewing the scenarios of effective development of the Solimões project.
The acquisition of the remaining interest in the Solimoes Project will allow Rosneft Brasil to continue the exploration program in frontier areas, focused on oil opportunities, and advance joint work with Petrobras on the monetization of proven gas resources. Planning will now start on the commencement of operations before the 2015 is out.
The Solimões project establishes Rosneft in Brazil, a country with major upstream growth opportunities and synergies with Rosneft operations in Venezuela.
Rosneft has a vast experience in managing remote drilling and seismic operations, which the company will implement in the realization of the Solimões project. Post exploration Rosneft expects to use its expertise in onshore production of oil and gas.