PETRONAS, through its subsidiary PETRONAS Brasil E&P Limitada, has reached an agreement with OGX Petroleo e Gas S.A (OGX) to acquire OGX’s interest in two offshore blocks in Brazil’s Campos Basin.

Under the agreement signed on 7 May 2013, PETRONAS Brasil will acquire 40 per cent of OGX’s interest respectively in Blocks BM-C-39 and BM-C-40 for a total consideration of US$850 million (RM2.6 billion). The blocks are located in the shallow waters 95 km offshore Rio de Janeiro state and contain the Tubarão Martelo field which is currently under development.

Brazil is considered to be one of the world’s top holders of hydrocarbon reserves, with about 145 billion barrels of oil reserves. The proposed acquisition, which is at the asset level, will mark PETRONAS’ first entry into the exploration and production business in the country.

PETRONAS views the acquisition as a highly attractive opportunity in terms of asset quality and for strategic future growth in Brazil. The completion of the transaction is conditional upon relevant regulatory approvals.

Bank of America Merrill Lynch is the exclusive financial advisor while Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados is the legal advisor to PETRONAS on this transaction.