The U.K. supermajor,
), has divested 60% of its stakes in one of the 14 oil interests
in Brazil to HRT Oil & Gas Ltd. in a cash transaction valued
at $135 million.
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The sale of the Polvo oil field in Brazil is expected to close in
the later half of 2013 and is subject to Brazilian regulatory
approvals. The remaining 40% interest in the field is held by the
Danish energy major, Maersk.
Located in shallow waters offshore from Rio de Janeiro in Block
BM-C-08 in the southern part of Campos Basin, the Polvo field
lies 100 meters below the water level. The field came online in
2007 and has been operated by BP since its purchase from
Devon Energy Corporation
). The average daily yield of the field is about 13,000 barrels
of oil of which BP gets a 60% share.
Of the 14 exploration and production blocks, where BP has
interests, the company farmed into Devon Energy operated 10
blocks including Polvo oil field in 2011. The remaining four were
acquired from Brazilian energy multinational
Petroleo Brasileiro S.A.
, or Petrobras (
) in 2012.
The sale is a part of BP's strategy to optimize its global
portfolio and reposition the company for long-term growth. The
energy giant has created a large portfolio of upstream interests
in Brazil over the last two years. Currently, the company is
aggressively pursuing explorations in this new acreage that
presents significant upside potential over the long-term.
BP's presence in Brazil dates back to 1957 and has significant
business interests in the region even after the sale. It operates
in Brazil through four businesses - exploration and production
(BP Energy do Brasil); biofuels (BP Biocombustíveis); aviation
fuel (Air BP); and lubricants (Castrol).
BP carries a Zacks Rank #3 (Hold), which is equivalent to a
short-term Hold rating. However, the Zacks Ranked #1(Strong Buy)
) is expected to outperform the market over the next few months.