Petrobras has relinquished its 50 percent stake in Petrobras Oil & Gas BV (POGBV), through which it had control over the Nigerian oil fields of Egina and Agbami, thus completely bringing down the curtains on its presence in the African continent.
In October 2018, the Brazilian oil giant forged collaboration with Petrovida Holding, which is now fully under the control of Africa Oil.
Following negotiations for selling its stake in POGBV, the amount paid by Petrobras to Petrovida Holding was reduced from $1.53 billion to $1.454 billion. The biggest portion of the money has arrived in the form of dividends from POGBV, with a pay-out of $1.3 billion.
Initiated in the beginning of January 2018, the partnership saw a further $276 million being paid out during its closing stages. Apart from this, there are two more sums that are yet to be paid later on.
While $123 million is to be paid after a redetermination activity on the Agbami field, the ultimate payment has to be done on June 30.
Last year, the volume of production that Petrobras generated from its Nigeria plants was about 34,000 barrels per day.
The oil behemoth has said that this deal is led by its strategy to augment its range and enhance the manner it distributes cash.
The remaining 50 percent stake in POGBV is owned by BTG Pactual E&P that has assisted by sponsoring Africa Oil’s involvement in the transaction through a $250 million loan.
Headquartered in the Netherlands, the firm is a joint venture that has an 8 percent stake in Nigeria OML 127 and 16 percent in OML 130. In the first block, there is Agbami while Akpo and Egina are in the second.
Disclosing that the overall cash paid was $519.5 million that also included a fee to the Nigerian government, Africa Oil CEO Keith Hill said that the conclusion of the transaction would usher in production and cash flow to the Toronto-listed organisation.