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BP Announces Sale of Interest in Polvo Field, Brazil

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.

Notes:

BP in Brazil

  • BP has been present in Brazil since 1957 and currently operates four businesses in the country: exploration and production (BP Energy do Brasil); biofuels (BP Biocombustíveis); aviation fuel (Air BP); and lubricants (Castrol).
  • BP Energy do Brasil has 14 concessions in five Brazilian basins.
  • BP owns and operates three producing ethanol mills in Brazil, with a total crush capacity of 7.5 million tonnes per annum.
  • Air BP operates in 18 airports across the country, providing aviation fuel to the commercial, military and general aviation.
  • Castrol provides high quality lubricants to the automotive, industrial marine and energy sectors.
  • Earlier this year BP and Brazilian group EBX signed an agreement to form a joint venture for the distribution of marine fuels in Brasil.
  • BP Group companies are present in eleven Brazilian states (Bahia, Ceará, Espírito Santo, Goiás, Maranhão, Mato Grosso, Minas Gerais, Paraná, Pernambuco, Rio de Janeiro and São Paulo) and the Federal District.

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