Formation of a Joint Venture to operate in Africa
We announce that subsidiary Petrobras International Braspetro B.V. ("PIBBV"), together with the investment vehicle owned and managed by BTG Pactual ("BTG Pactual Vehicle") entered into a binding instrument ("Agreement") for the formation of a joint venture (at the proportion of half each) for oil and gas exploration and production in Africa ("E&P").
Our partnership with BTG Pactual is a promising investment opportunity in E&P in Africa and is the preferred vehicle for new investments of this nature on the continent.
The joint venture will be made upon the acquisition, by BTG Pactual and its customers by means of the BTG Pactual Vehicle, of half of the shares issued by Petrobras Oil & Gas B.V. ("PO&G"), currently wholly owned by PIBBV, for a total amount of $1.525 billion. The operation will involve, once the corporate reorganization currently underway has been completed, branches located in Angola, Benin, Gabon, and Namibia, as well as the Brasoil Oil Services Company (Nigeria) Ltd., Petroleo Brasileiro Nigeria Ltd. and Petrobras Tanzania Ltd. subsidiaries.
The partnership was approved by Petrobras' Board of Directors during a meeting held today and it is expected to be closed by late June.
The formation of this joint venture is an important step for us, under the Divestment Program, allowing for the expansion of our operations in Africa and the sharing of the investments required for reserve expansion and development, in accordance with our 2013-2017 Business and Management Plan.
We reaffirm our operations in these countries, in full compliance with local laws, our social responsibility policy, and with the commitments we have taken on.