Petrobras Completes Sale of PO&GBV

Source Press Release
Company Petrobras (IFRS US$ Current)Africa Oil Corp 
Tags Corporate Deals, Deals, Upstream Activities
Date January 14, 2020

Petrobras, following up on the release dated 10/31/2018, reports today that it completed the sale - to Petrovida Holding B.V. (Petrovida) - of the 50% equity interest held by Petrobras International Braspetro B.V. (PIBBV) in Petrobras Oil & Gas B.V. (PO&GBV).  

The transaction involved a total amount of US$ 1.530 billion, which was adjusted to US$ 1.454 billion, reflecting the incidence of interest on the acquisition price and the deduction of Petrobras’ portion from the payment of fees for approval of the transaction by the Nigerian Government. From the total of US$ 1.454 billion, Petrobras has received US$ 1.030 billion as dividends from PO&GBV, as of the base date of the transaction (01/01/2018), and is receiving today US$ 276 million; remaining to receive US$ 123 million, subject to update, as soon as the redetermination process of the Abgami field is implemented and US$ 25 million up to 06/30/2020.

PO&GBV dividend distribution is in line with the strategy of anticipating the asset monetization and was possible due to PO&GBV's operational generation and gross debt increase, which raised from US$ 800 million on 12/31/2017 to US$ 1.825 billion on 12/31/2019. 

With the transaction closing, Petrobras fully ceases its operational activities in Africa.

The transaction is in line with the portfolio optimization and improvement of the company's capital allocation, aiming at generating value for its shareholders. 

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