BP expands Brazilian upstream presence, farming-in to five concessions in Potiguar Basin

BP announced today that it has completed a deal with Petróleo Brasileiro S.A. (Petrobras) to farm-in to five deepwater exploration and production concessions operated by Petrobras in the Potiguar Basin located in the Brazilian Equatorial Margin. Subject to regulatory approvals, BP Energy do Brasil Ltda. will take a 30% interest in blocks POT-M-663, and POT-M-760 (contract BM-POT-16), and a 40% interest in blocks POT-M-665, POT-M-853 and POT-M-855 (contract BM-POT-17). Together these blocks cover a total area of 3,837 square kilometres.

Guillermo Quintero, BP Brazil President said: “This is another step in building our presence in Brazil. Since first gaining interests in 10 blocks with our purchase of Devon Energy do Brasil in 2011, we have now expanded our upstream portfolio to interests in 27 blocks in 7 basins, which includes the largest deep-water exploration portfolio held by an international oil company in Brazil.”

Following the farm-in and the signature of concession agreements awarded in Brazil Round 11, BP will hold interests in concessions in 27 blocks in Brazil, of which BP will operate eight. Petrobras will also hold interests in 22 of the blocks: 12 operated by Petrobras, six by Total, and four by BP.

Further information

Contacts

BP US Press Office, London: +44 (0)207 496 4076, bppress@bp.com

BP Energy do Brasil Ltda, Carolina Lang, Maquina de Noticias: +55-21-3478-3105

Notes to editors

• Contracts BM-POT-16 and BM-POT-17 were awarded in Brazil Round 7 (2005). They are located between 40 and 110 kilometres offshore from the coast of Rio Grande do Norte and Ceará states, in water depths ranging from 50 metres to 2,100 metres.
• After regulatory approvals, BM-POT-16 will be explored by a consortium formed by Petrobras (30% operator), BP (30%), Petrogal Brasil S.A. (20%) and IBV (20%), while BM-POT-17 will be explored by Petrobras (40% operator), BP (40%) and Petrogal Brasil S.A. (20%).
• 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 currently has interests in 14 concessions in five Brazilian basins, not including the eight blocks awarded in Brazil Round 11 (concession agreements to be signed in August) or the farm-in announced today.
• 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.
• Once the Potiguar farm-in is approved and the Brazil Round 11 concession contracts are signed, BP Group companies will be present in fourteen Brazilian states (Amapá, Bahia, Ceará, Espírito Santo, Goiás, Maranhão, Mato Grosso, Minas Gerais, Paraná, Pernambuco, Piauí, Rio de Janeiro Rio Grande do Norte and São Paulo) and the Federal District.