BP announced today that it has agreed to sell its 60% interest in the Polvo oil field in Brazil to HRT Oil & Gas Ltda for $135m in cash. Subject to regulatory approvals, BP expects the deal to close in the second half of 2013.
“Over the past two years BP has built a significant portfolio of upstream interests in Brazil which offer long term growth potential. We are now actively engaged in exploring this new acreage,” said Guillermo Quintero, BP Brazil President. “The sale of our interest in the Polvo field is part of our ongoing global portfolio optimization as we reposition the company for long-term growth.”
BP currently has interests in fourteen exploration and production blocks in Brazil. BP purchased interests in ten exploration and production blocks – including the shallow-water Polvo field – from Devon Energy in 2011 and farmed into four deepwater blocks operated by Petrobras a year later. Earlier this year BP announced a successful flow test at its operated Itaipu discovery in the Campos basin, one of the blocks acquired from Devon.
The Polvo field is located in the southern part of Campos basin, approximately 100 kilometres off the coast of Rio de Janeiro, in water depths of around 100 metres. Commercial production started in 2007 and BP has operated the field since its acquisition from Devon. The other 40% stake in the field is owned by Maersk.
Polvo currently produces approximately 13,000 barrels of oil per day, with BP taking a 60% share.