PetroRio has executed a share purchase agreement with Petrobras for the acquisition of the entirety of the oil and gas exploration, development and production rights and obligations equivalent to its 30% interest of the Frade consortium, which is located in the Campos Basin, in the northern shore of Rio de Janeiro, and of Frade BV, which owns the offshore assets operating in the field. The cost of the acquisition is USD 100 million, to be paid in two installments: 1) a down payment of USD 7.5 million at signing and 2) USD 92.5 million upon closing, subject to adjustments.
An additional USD 20 million is to be paid contingent to a potential new oil discovery not included in the previously disclosed Frade revitalization plan. This transaction gives PetroRio the entirety of the field’s production, enabling Frade’s revitalization plan upon closing. Closing is subject to s approvals by the Brazilian antitrust council (CADE) and the country’s Petroleum, Gas, & Biofuels Agency (ANP), as well as internal approvals.