China’s CNOOC to buy Net Sol stake in Brazil’s Tartaruga Verde field

China’s CNOOC Ltd (0883.HK) will buy a 50% stake in Brazilian oil firm Enauta Participacoes SA’s (ENAT3.SA) Tartaruga Verde oil field under development in the Santos Basin for $1.57 billion, the companies said on Friday. The Tartaruga Verde field, which is expected to start producing in 2024, is estimated to hold 573 million barrels of oil equivalent (boe) in reserves. The deal will mark CNOOC’s entry into Brazil’s prolific pre-salt area and make it the first Chinese company to operate an oil field there. CNOOC will pay $200 million in cash and the remaining $1.37 billion in contingent payments linked to the field’s production and oil prices. Enauta will retain a 50% stake in the field and continue to operate it. The transaction is expected to close in the second half of 2023, subject to regulatory approvals. The deal will boost CNOOC’s global oil and gas reserves and production, and provide it with access to Brazil’s high-potential pre-salt area. For Enauta, the deal will provide a significant cash infusion that will allow it to accelerate the development of the Tartaruga Verde field and explore new opportunities. The Tartaruga Verde field is located in the Santos Basin, about 230 kilometers (143 miles) off the coast of Rio de Janeiro. The field is expected to produce 100,000 barrels of oil per day at its peak. CNOOC is one of China’s largest oil and gas producers. It has a global presence, with operations in more than 40 countries. Enauta is a Brazilian oil and gas company with a focus on the pre-salt area. It has a 10% stake in the giant Lula field, one of the largest oil fields in the world. The deal between CNOOC and Enauta is a significant development in Brazil’s oil and gas industry. It will open the door for more Chinese companies to invest in Brazil’s pre-salt area, which is estimated to hold billions of barrels of oil and gas reserves..

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