Asset A&D

BP to Withdraw from Foz do Amazonas Exploration Blocks in Brazil

By Isha Makkar
April 06, 2021
a minute read

BP Plc has signed agreements with Brazil’s state-owned Petroleo Brasileiro SA (Petrobras) to withdraw from its non-operated interests in exploration blocks FZA-M-57, FZA-M-59, FZA-M-86, FZA-M-88, FZA-M-125 and FZA-M-127 in the Foz do Amazonas basin, offshore Brazil. Upon completion, Petrobras will own a 100% operated interest in the blocks.

BP currently holds a 30% interest in all the blocks except FZA-M-59, with a subsidiary of TOTAL SA holding a 40% interest, and Petrobras holding the remaining 30%. In block FZA-M-59, BP holds a 70% interest, with Petrobras holding the remaining 30%.

In September 2020, TOTAL had entered into an agreement with Petrobras to withdraw from its 40% operated interest in blocks FZA-M-57, FZA-M-86, FZA-M-88, FZA-M-125 and FZA-M-127. The transaction is currently subject to receipt of regulatory approvals

The blocks are located in the Foz do Amazonas basin, situated approximately 120 km off the coast of Amapá State. Awarded in May 2013 as part of the ANP’s 11th Bidding Round, the blocks lie in water depth of 100 to 500 m. The blocks are estimated to contain more than 14 billion barrels (Bbbls) of oil.

“This transaction is in line with the 2021-2025 Strategic Plan, which foresees new exploratory fronts outside the Southeastern basins, and is part of the company’s portfolio management process, prioritizing investments in world-class assets in deep and ultra-deep waters, aiming to maximize value for our shareholders,” the company stated in a press release.

The completion of BP’s exit from the blocks remains subject to the receipt of approval from Brazilian regulator Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP).

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