Petrobras’s executive board has approved the sale of its 100% stake in deep water exploration and production (E&P) assets, located in the Espírito Santo basin, Brazil, to BW Energy’s subsidiary BW Energy Maromba do Brasil (BWE).

The sale includes the 100% stake in the Golfinho Cluster and Camarupim Cluster maritime concessions groups and a 65% stake in the BM-ES-23 block.

In exchange, Petrobras will receive up to $75m, of which $3m will be paid on signing date of the agreement and $12m at the closing of the transaction.

BWE will make contingent payments of up to $60m, based on future Brent prices and the development of the assets.

Subject to compliance with preceding conditions, the transaction is planned to be closed in Q1 2023.

The sale forms part of the Brazilian firm’s portfolio management strategy and efforts to improve capital allocation.

BW Energy expects the acquisition to add approximately 9,000 barrels of oil per day, starting from early next year.

Upon completion of the deal, BW Energy will be responsible for the field abandonment liability for the floating production storage and offloading (FPSO) unit, the subsea system, and 13 wells.

Petrobras will share the cost of four of the 13 wells.

BW Energy CEO Carl Arnet said: “Golfinho offers material ongoing production and cashflow in Brazil at an attractive price, with significant upside potential in near-field exploration and phased developments.

“It will diversify our production base, accelerate the build-up of the local operating organisation, and provide an established working relationship with Brazilian stakeholders ahead of the Maromba development.”

Located in water depths between 1,300m and 2,200m, the Golfinho Cluster includes the Golfinho oil field, the Canapu gas field, and the exploration block BM-ES-23.

The Camarupim Cluster is located in water depths between 100m and 1,050m. It includes the unitised Camarupim and Camarupim Norte fields.

As per BW Energy’s internal estimate, the clusters hold 38 million barrels of oil equivalent of proven recoverable resources, mainly comprising oil.

Last month, Petrobras announced that it had awarded Subsea 7 a contract for the development of the Búzios 8 offshore field.