Petronas, the state backed Malaysian oil company Petronas has entered into an agreement to pay US$850 million for a stake in an oil field located offshore in Brazil. The owner of the oil asset is Eike Bautista, who is currently unloading assets in order to keep his business above water.
Petronas is one of the few oil firms that is expanding abroad in order to increase its future earnings while production slows down back home. Aside from the purchase, the company also has an option to purchase 5% of OGX Petroleoe Gas SA, which is owned by a Batista controlled company.
The 40% purchase would be done in two blocks off the Rio de Janeiro coast. This is the second acquisition done by Petronas, as it had also undertook a US$5.1 billion purchase of Canadian oil and gas company Progress Energy Corp.
Petronas has an option to purchase 5% of OGX for about 6.3 reais per share. This would make the value of the purchase at US$160 million, depending on the calculations as to the current outstanding shares available.
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