Brazilian state oil company Petroleo Brasileiro SA (Petrobras) has signed a project finance agreement worth $170 million with Japan's Nissho Iwai Corp. and Indonesia Petroleum Ltd. (Inpex) to complete the second phase of Petrobras' production development project at the Albacora field.
Albacora is in the Campos basin off Brazil's Rio de Janeiro state. Completion of the project's second phase, valued at $470 million (US), will raise oil production to 150,000 b/d from 50,000.
The agreement calls for a consortium to be formed between Petrobras and Albacora Jap�Petr�leo Ltd. (AJP), a Brazilian company that will be owned by Nissho Iwai and Inpex. The consortium, which will have a legal life of 8 � years, will expand Albacora's oil production. AJP will provide the $170 million in funding for the project.
Nissho Iwai and Inpex's internal resources will provide $63.5 million by the end of the 2001; the remainder will be raised through external capital financing. The Japan Bank for International Cooperation, also will contribute $74.5 million, and a syndicate of commercial banks led by the Industrial Bank of Japan Ltd. and the Bank of Tokyo-Mitsubishi Ltd., which will provide $32 million.
The remaining cost of $300 million will come from institutional investors.
