AziLat Ltd., an oil and gas exploration company focused on South America will buy two offshore blocks in Brazil from OGX Petróleo e Gás S.A. (“OGX”).
The blocks CE-M-603 and POT-M-475 are located in the Ceará Basin and the Potiguar Basin, respectively, and are operated by ExxonMobil Exploração Brasil Ltda (“ExxonMobil”).
AziLat Managing Director, Michael Stewart, said: “We are extremely pleased with this transaction. The two blocks are located in the Ceara and Potiguar basins of the Conjugate Equatorial Margin of Brazil, one of the most exciting exploration areas globally and home to a number of giant discoveries. These blocks were selected on their specific potential to contain hydrocarbon accumulations, similar to those found elsewhere on the equatorial margin. We look forward to working with ExxonMobil on progressing the work program.”
Petroleum Geo Services A.S.A. is shooting a 1,100 km2 3D seismic survey on Block CE-M-603, already underway, and a 1,000 km2 3D survey in Block POT-M-475 is expected to start in the first quarter of 2016.
Upon completion of the transaction, which needs to be approved by Brazil’s oil industry regulator, Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis – ANP, the participating interests in the blocks will be as follows:
Following the transaction, Azilat will own a 50% stake in Block CE-M-603, and a 65% stake in POT-M-475. ExxonMobil will remain the operator of both blocks.