Shell sells its part of Bem-te-vi to QGEP and Barra Energia

06/07/2011

Amount of transaction is not revealed
QGEP buys 10% and Barra Energia another 10%
With this deal, Shell leaves consortium in the BM-S-8

RIO DE JANEIRO, 5th July (Reuters) - Shell Brasil sold its participation of 20 per cent in the BM-S-8 block, in Santos basin, where the promising prospect Bem-te-vi is located, to the Brazilian companies Queiroz Galvão Exploração e Produção and Barra Energia in equal parts, announced the purchasing companies this Monday.

Without revealing the value of the transaction, the two companies said they each acquired a 10 per cent in the block located in the coveted basin and that was among the assets on sale announced by Shell in September 2010.

Operated by Petrobras, which holds 66 percent, the block also has as partner, the Portuguese Galp, with 14 percent. The transaction still needs approvals from Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP).

Petrobras declared in May 2008 that found signs of oil in the block and preliminary analysis indicated that the density of oil is between 25º and 28º API, intermediate oil, better than average in Brazil and comparable to other pre-salt discoveries of the pre-salt in Santos Basin.

According to the president of QGEP, José Augusto Fernandes, the operation "reaffirms the policy of the company's growth, sustained in the acquisition of high quality assets and that can add value to the portfolio."

For Renato Bertani, the executive director of Barra Energia, a company that has among its partners the president of the Instituto Brasileiro do Petróleo (IBP), João Carlos de Luca, the company's first acquisition "represents an important step in implementing our strategy of building a high quality portfolio of exploration assets and oil production in Brazil".

Bertani also informed that Barra Energia is searching for new opportunities, but did not give any details.

The delay in conducting auctions of oil and natural gas in the country has led companies to seek acquisitions of existing assets.

The government forecast that this year will be held the 11th round of bidding for the oil and natural gas, but for that, the president Dilma Rousseff must sign the authorization of the auction until the end of July.

Article by Denise Luna and Alberto Alerigi Jr.; Editing by Marcelo Teixeira