Petrobras to farm into permit off W. Australia

Brazil’s Petroleo Brasileiro SA (Petrobras) paid $39 million to MEO Australia Ltd., Melbourne, for its 50% farm-in to offshore Western Australian permit WA-360-P.

Oct. 18, 2010

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Oct. 18 -- Brazil’s Petroleo Brasileiro SA (Petrobras) paid $39 million to MEO Australia Ltd., Melbourne, for its 50% farm-in to offshore Western Australian permit WA-360-P.

The figure includes $7.5 million for related seismic back-costs plus the first $31.5 million cash bonus.

MEO will now settle its transaction with fellow Melbourne firm Moby Oil & Gas for the purchase of an additional 5% interest in the permit for $7 million of which a $1.5 million deposit has been paid.

MEO will also commit a further $1 million to the acquisition of a 15% interest in neighboring WA-361-P from Gascorp Australia, also of Melbourne.

Petrobras’s farmin to WA-360-P at the beginning of this year was the Brazilian company’s first entry into Australia.