Petrobras, Karoon Change Terms of $665M Sale of Baúna Field Stake

Ana Mano

July 27, 2020

Image Credit: Karoon

Image Credit: Karoon

Brazilian oil company Petróleo Brasileiro SA announced adjustments to a $665 million contract governing the sale of its entire stake in the Baúna oil field to Australia’s Karoon Energy, according to a securities filing late on Friday.

The Bauna field is in the Santos basin in the Atlantic Ocean.

Under the new terms, Karoon is paying an initial $380 million to Petrobras, including a $49.9 million downpayment made on July 24 and $150 million to be paid at the closing date of the deal, which depends on certain conditions being met.

The remainder of the $380 million will be paid in 18 monthly installments from the transaction’s closing date, Petrobras said.

An additional installment of $285 million would be paid through 2026, the filing said.

The terms of the deal were changed because of the COVID-19 pandemic, which made it difficult to meet previously agreed conditions. 

(Reporting by Ana Mano; Editing by Steve Orlofsky)