Emily Darby

 

Brazil’s Machado Meyer Advogados has helped state-owned oil company Petrobras sell its entire stake in a cluster of onshore fields to local oil company Karavan in a deal worth US$155 million.

 

Barbosa, Raimundo, Gontijo e Câmara Advogados advised Karavan, which made the purchase through a special purpose entity. The deal was signed on 27 August.

 

Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados advised oil investor Seacrest Petróleo, the minority stakeholder.

 

Karavan owns a 51% stake in the special purpose vehicle, while Bermuda-based private equity group Seacrest holds the remainder.

 

The cluster of oil fields, named Cricaré, has 27 onshore exploration and production fields located in the state of Espíritu Santo in south-eastern Brazil.

 

The buyers paid US$11 million upon the deal’s signing, with an additional US$26 million to be transferred on the closing date. The remaining US$118 million will be paid as an earnout, on the condition that the oil assets meet certain targets set out in the sales agreement.

 

The transaction is the latest in Petrobras’ comprehensive divestment programme.

 

The state-controlled company is looking to increase liquidity and manage its heavy debt burden – currently sitting at US$80 billion – by divesting several of its assets. Recent sales include the divestment of its TAG pipeline to French counterpart Engie and Canadian investor Caisse de dépôt et placement du Québec for US$8.7 billion in July, in what is one of the largest M&A deals in the oil sector. Petrobras also sold its gas distribution company Liquigás for US$800 million last December.

 

Karavan is a Brazilian oil exploration and production company with onshore and shallow water facilities. The newly acquired Cricaré cluster produces an average of 1,700 barrels of oil a day.

 

Counsel to Karavan SPE Cricaré

  • Barbosa, Raimundo, Gontijo e Câmara Advogados
  • Partners Rodrigo Câmara and Jorge Pedroso, and associates Bernardo Pedrete, Cristina Justo and Juliane Lacerda

 

Counsel to Petrobras

  • Machado Meyer Advogados

 

Counsel to Seacrest Petróleo

  • Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados
  • Partners Giovani Loss and Thiago Luís Sombra, and associates Danielle Ludwig, José Eduardo Siqueira, Flavia Giambroni, Eugênia Pedroso, Ana Carolina Nakamura, Igor Novais Teixeira, Marcelo Schwartzmann and Viviane Kwon

 

(Latin Lawyer – 08.09.2020)

(Notícia na íntegra)