NEWS
Offshore Exploration Project in Northern Brazil
December 11, 2015
Project
Mitsui Oil Exploration Co., Ltd. ("MOECO", Head Office: Tokyo, President & CEO: Mitsuo Hidaka) and Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) have reached an agreement with BG E&P Brasil Ltda. ("BG"), a group company of BG Group plc, to acquire 10% participating interest through Mitsui E&P Brasil Ltda. ("MEPBR"), Mitsui's subsidiary jointly established with MOECO, in four deepwater exploration blocks in Barreirinhas Basin, northern Brazil. A farmout agreement was signed on April 14th, 2015, and subsequently, with all the closing conditions satisfied, including receipt of the Brazilian Petroleum Agency's approval for this deal, the agreement was successfully closed on December 8th, 2015. BG remains as the operator with 65% participating interest.
The four blocks, encompassing 3,077 km2, are located offshore northern Brazil, an under-developed, frontier area with the potential for significant oil reserves. During the next four years of the exploration period, MEPBR is planning to invest with BG, as well as its existing Thai partner, PTTEP Brasil Investimentos em Exploração e Produção de Petróleo e Gás Ltda. ("PTTEP BL"), in order to carry out exploration activities such as seismic surveys and exploration drilling to confirm the existence of oil and gas in the blocks.
MOECO designates this transaction as a positive step toward the realization of the balanced portfolio by obtaining good assets in South America.
[Contractual Coverage]
Buyer |
Mitsui E&P Brasil ("MEPBR") |
Seller |
BG E&P Brasil ("BG") |
Acquisition |
10% participating interest in four deepwater exploration blocks, Barreirinhas Basin BAR-M-215 block, BAR-M-217 block BAR-M-252 block, BAR-M-254 block |
[Project Overview]
Asset |
Deepwater exploration blocks, Barreirinhas Basin |
Interest Holders (after closing) |
65% BG [Operator] 25% PTTEP BL 10% MEPBR |
Location |
Offshore northern Brazil (water depth: 2,000 m) |
[Location of acquired blocks]
[Overview of BG Group]
Company Name |
BG Group plc |
Headquarters |
Reading, United Kingdom |
Traded on |
London Stock Exchange |
Business |
Broad portfolio of business interests focused on oil and gas exploration & production, and LNG. |
Employees |
4,927* |
Total Assets |
$61.85 billion* |
Total Production |
0.606 million boe per day* |
Total Reserves |
6.53 billion boe* |
*Financial Year 2014