Petro Rio Acquires the OSX-3 FPSO and 80% in the Tubarão Martelo Oil Field in Brazil
Brazilian oil & gas company Petro Rio SA has executed agreements with compatriot Dommo Energia SA to acquire an 80% working interest in the Tubarão Martelo (TBMT) oil field located in the Campos Basin, off the coast of Rio de Janeiro State. Concurrently, Petro Rio has also entered into an agreement with oil field services group OSX Brasil SA to acquire the OSX-3 FPSO (currently chartered to Dommo Energia for TBMT), for a total cash consideration of US$140 million. The two transactions will allow for a tieback between the TBMT and Polvo fields, which is 100% owned and operated by Petro Rio. In exchange for the 80% interest in TBMT, Dommo Energia will be exempted from future FPSO charter obligations, capital expenditures and abandonment costs, and will also receive a share of production from TBMT as well as the Polvo field (post tieback). Evercore Group acted as exclusive financial advisor to Dommo Energia for the transaction.