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CNPC Finance (HK) Limited provides loan to help CNODC Brasil Petróleo e Gás Ltda. acquire a 5% stake in Buzios oilfield production rights
| Funder | CNPC Finance (HK) Limited |
|---|---|
| Recipient Organization | CNODC Brasil Petróleo e Gás Ltda. |
| Country | Brazil |
| Start Date | Nov 06, 2019 |
| End Date | Aug 28, 2027 |
| Duration | 2,852 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 96298 |
Grant Description
CNPC Finance (HK) Limited provides loan to help CNODC Brasil Petróleo e Gás Ltda. acquire a 5% stake in Buzios oilfield production rights The Búzios oilfield is located in Santos Basin, southeast offshore of Brazil, with an average water depth of approximately 2,200 meters. It is the world's largest deep-water pre-salt producing oil field.
On June 11, 2021, Petróleo Brasileiro S.A. (Petrobras), Pré-sal Petróleo S.A. (PPSA) and its partners CNODC Brasil Petróleo e Gás Ltda. (CNODC) and CNOOC Petroleum Brasil Ltda. (CNOOC) signed the so-called ‘Búzios co-participation agreement’, which regulates the coexistence of the Transfer of Rights Agreement and the Production Sharing Contract (PSC) for the Surplus of the Transfer of Rights for the Búzios field, in the Santos Basin pre-salt area.
The signing of the co-participation agreement followed a bidding process that was conducted by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) and held on November 6, 2019, in which Petrobras acquired 90% of the rights to explore and produce the surplus volume of the Transfer of Rights from Búzios field, in partnership with CNODC (5%) and CNOOC (5%).
The value of the total compensation due to the Transfer of Rights Agreement (100% Petrobras) for the Production Sharing Contract is $29.4 billion.
Since Petrobras has a 90% stake in the consortium of the PSC contract, and CNOOC and CNODC both hold 5% stakes, CNODC and CNODC were collectively responsible for providing $2.94 billion ($1.47 billion each) in cash to Petrobras on the effective date of the Búzios Co-participation Agreement.
The co-participation agreement became effective as of September 1, 2021, marking a milestone for the Búzios PSC consortium to start extracting oil from the Búzios field.
There are currently four FPSOs operating in Buzios and up to a total of 12 floating platforms are expected to be installed by 2030, potentially taking output to 2 million barrels per day.
According to CNPC Finance (HK) Limited, it issued a loan in 2019 to facilitate CNODC’s acquisition of a 5% stake in the Búzios oilfield.
Staff Comments
- The face value of the CNPC Finance (HK) Limited loan is unknown. However, given that the total cost of the acquisition to CNODC Brasil Petróleo e Gás Ltda. was $1.47 billion and most Chinese acquisition loans cover at least 70% of the total cost of the acquisition, AidData assumes for the time being that the face value of the CNPC Finance (HK) Limited loan was roughly equivalent to $1.029 billion. This issue warrants further investigation.
- CNODC Brasil Petróleo e Gás Ltda. is a wholly owned subsidiary of China National Oil and Gas Exploration and Development Corporation (CNODC), which is itself a wholly-owned subsidiary of China National Petroleum Corporation (CNPC).
- An official source of evidence that a loan was issued by CNPC Finance (HK) Limited in 2019 is pg. 9 of the 2019 Annual Report of CNPC Finance (HK) Limited (http://cpf.cnpc.com.cn/cpf/gsnbxx/202007/b0d41d52a8424f62a63f35a3bcab7d8d/files/ec94a72637314ebe97fce62957bbff70.pdf).
- The Chinese project title is 署巴西布茲奧斯(Buzios)收購 or 署巴西布茲奧斯收購 or 布兹奥斯项目 or 巴西深海盐下项目.
Sources & References
- 2019 Annual Report
- Tauil & Chequer Advogados advises CNOOC Group on the acquisition of Petrobras' stake in the Búzios field for R$10.3 billion
- Petrobras Awarded Búzios
- Itapu Blocks in Brazilian Auction
- Chinese company says no to increased stake in Buzios field
- UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Petrobras signs Búzios Coparticipation Agreement
- CNPC Annual Report 2019
- 盘点2019中国石油海外及国际能源新闻
- 中石油签署巴西两大油田区块项目产品分成合同
- Búzios oil field
- Sidley Represents CNODC in the Development of the World’s Largest Deepwater Field in Brazil Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
CNODC Brasil Petróleo e Gás Ltda.
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