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Memorandum | Oil and Gas: Petrobras kicks off new divestment procedures

Oil and Gas
Petrobras disclosed on May 16, 2017, further information on its revised divestment procedures, following approval from the Brazilian Federal Court of Audit (TCU). As per our previous memorandum on this subject, the main purpose of the revised procedure is to increase transparency, control, governance and competition in the divestments carried by Petrobras.

In this regard, Petrobras’ divestment procedure will encompass three phases:

i. Structuring: where the deal is prepared and structured;

ii. Project development: which includes disclosure of the teaser, execution of confidentiality agreements, due diligence, non-binding and binding offers, negotiations and internal approvals; and

iii. Closing: where the parties will seek any required external approvals and close the deal.

In order to ensure greater transparency, Petrobras’ executive board will be involved in various approval steps and the company will also publish press releases during the sale process.

We have prepared a flowchart of the new procedure based upon information disclosed by Petrobras, which can be found here. You can also find more information directly on Petrobras’ website by clicking on this link. Unfortunately, the information is in Portuguese only.

Petrobras has also commenced the first sale under this new procedure, which involves the Azulão field (BA-3 concession) located onshore in the Amazonas Basin. The Azulão teaser disclosed by Petrobras is available in English for download here. Interested companies must express their interest by May 26, 2017.

For additional information, please contact:

Giovani Loss
[email protected]
T +55 21 3231-8246

Pablo Sorj
[email protected]
T +55 21 3231-8241

Bruno Werneck
[email protected]
T +55 11 3147-2584

Fabiano Luz de Brito
[email protected]
T +55 11 3147-7726

Thiago Fernandes Moreira
[email protected]
T +55 21 3231 8115

Felipe Feres
[email protected]
T + 55 21 3231-8246

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