Brazil: TNK-BP takes Petra Solimoes basin farmout

By OGJ editors
HOUSTON, July 19 -- TNK-BP, Moscow, signed a farmout agreement with Petra Energia of Brazil for the acquisition of a 45% stake in 21 blocks in the Solimoes basin.

The 21 oil and gas exploration blocks, majority owned and operated by HRT O&G, cover 48,000 sq km in the Brazilian Amazon (see map, OGJ, Mar. 7, 2011, p. 54). Consulting engineers report that the blocks contain a net prospective and contingent resource of 783 million bbl of oil equivalent, including 11 discoveries at which oil and gas were tested.

Initial production from the fields in the Solimoes basin is expected in 2012, TNK-BP said.

The farmout provides that the value of the transaction will depend on future performance of the asset. HRT will remain the operator, with TNK-BP playing a more active role during the development and production stages.

Closing of the transaction will be subject to final agreement between TNK-BP and HRT concerning operations, approval from TNK-BP and HRT boards of directors, and approval from Brazilian federal regulators. TNK-BP management hopes to have the agreements with HRT finalized by the end of August and submit the entire investment for board approval by September.