November 30, 2022
Tauil & Chequer Advogados advises CNOOC Group on the acquisition of Petrobras' stake in the Búzios field for R$10.3 billion
Tauil & Chequer Advogados in association with Mayer Brown advised CNOOC Group, which through its Brazilian subsidiary has been active in the exploration, production and commercialization of oil and gas in Brazil since 2013, in the acquisition of Petrobras' 5% stake in the production sharing contract of the Búzios field, in the amount of R$ 10.3 billion (US$ 1.9 billion). CNOOC was already Petrobras' partner in the Búzios Field with a 5% stake, acquired in consortium with the also Chinese company CNODC, in the First Bidding Round of the Surplus Volume of the Onerous Assignment conducted by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) in 2019.
The fields acquired for exploration and production from the surplus volume of the onerous transfer have a complex regulatory and contractual structure. Following the original acquisition in 2019, the lawyers have negotiated several agreements for the management of operations in the Búzios Field, including the hitherto unprecedented Co-Participation Agreement. Due to CNOOC's acquisition of additional participation, this is the first time that the ANP and the Brazilian Ministry of Mines and Energy (MME) have evaluated and approved the assignment of participation in a contract that operates under a co-participation area.
The Firm advised CNOOC in the preparation and negotiation of the assignment agreement, as well as in the process of securing the transaction’s approval by ANP, MME, and the Brazilian Administrative Council for Economic Defense (CADE), as well as in the amendment of all other contracts in effect for the Búzios project.
The team was led by partner Victor Galante (Corporate & Securities) and included the participation of partners Tiago Macêdo (Corporate and M&A), Guido Vinci (Tax) and Adriana Giannini (Competition), as well as associates Livia Seabra (Corporate and M&A), João Marcelo Rodrigues (Corporate and M&A), Niandra Soares (Tax), and Isabella Giorgi (Competition).
The fields acquired for exploration and production from the surplus volume of the onerous transfer have a complex regulatory and contractual structure. Following the original acquisition in 2019, the lawyers have negotiated several agreements for the management of operations in the Búzios Field, including the hitherto unprecedented Co-Participation Agreement. Due to CNOOC's acquisition of additional participation, this is the first time that the ANP and the Brazilian Ministry of Mines and Energy (MME) have evaluated and approved the assignment of participation in a contract that operates under a co-participation area.
The Firm advised CNOOC in the preparation and negotiation of the assignment agreement, as well as in the process of securing the transaction’s approval by ANP, MME, and the Brazilian Administrative Council for Economic Defense (CADE), as well as in the amendment of all other contracts in effect for the Búzios project.
The team was led by partner Victor Galante (Corporate & Securities) and included the participation of partners Tiago Macêdo (Corporate and M&A), Guido Vinci (Tax) and Adriana Giannini (Competition), as well as associates Livia Seabra (Corporate and M&A), João Marcelo Rodrigues (Corporate and M&A), Niandra Soares (Tax), and Isabella Giorgi (Competition).
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