Petrobras signed production-sharing contracts with the Ivorian government and state-owned Petroci Holding on Thursday for blocks CI-513, CI-600, CI-601, CI-602, CI-603, CI-605, CI-701 and CI-702.
Under the agreements, Petrobras will operate each block through its wholly owned subsidiary Petrobras Netherlands B.V. with a 90% interest, while Petroci will hold the remaining 10%.
Petrobras, said that the agreements are part of the Brazilian company’s strategy to replenish its oil and gas reserves through exploration in new frontiers at home and abroad.
The contracts turn months of negotiations into exploration rights for Petrobras. Côte d’Ivoire’s government announced in June that it had completed negotiations for the eight blocks.
The government said the agreements would increase the occupied share of the country’s sedimentary basin to 75%, covering about 63,000 square kilometres where production, appraisal and exploration activities are underway.
Petrobras builds its African portfolio.
The Côte d’Ivoire agreements form part of a wider push by Petrobras to rebuild its exploration presence in Africa.
“With this acquisition, Petrobras assumes a relevant presence in Côte d’Ivoire, a country located in a region of high exploratory potential, with geological characteristics similar to those of our sedimentary basins,” said Petrobras President Magda Chambriard.
The company sees similarities between parts of Africa’s Atlantic margin and Brazil’s sedimentary basins, where Petrobras has built decades of expertise in offshore and deepwater exploration.
That geological link has helped drive its search for acreage along Africa’s Atlantic coast.
Petrobras has expanded its presence in São Tomé and Príncipe and Namibia and is also pursuing exploration opportunities in Ghana.
The company said the Côte d’Ivoire blocks are located in an area with high exploration potential along Africa’s equatorial margin.
Côte d’Ivoire, meanwhile, has been attracting greater interest from international oil companies following major offshore discoveries in recent year.
For Petrobras, the eight contracts give the company a sizeable operated position in another West African oil market as it looks beyond Brazil for reserves that could support future production.
Source: Africabusinessinsider