Australia’s Karoon Gas is going back to court to defend its deal with Petróleo Brasileiro (Petrobras) for stake in two fields, following a rejection to lift the injunction made by the Brazilian state-owned company in the federal court of Sergipe.
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Image from Petrobras. |
The two companies entered a deal in October for Karoon to buy 100% stake in the Baúna field, in the shallow waters of post-salt Santos Basin, and 50% stake in the Tartaruga Verde field, in deepwaters of post-salt Campos Basin.
Since then, the deal has been through a tug-of-war in the Brazilian court system, which is currently in a recess period until 20 January 2017.
It all began on 25 October, when court proceedings were initiated in the federal court of Sergipe by JoséHunaldo Nunes Santos against Petrobras, the Brazilian oil and gas regulator Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) and Karoon alleging that the correct sale procedure was not followed.
On 19 November, an injunction was granted suspending the potential sale of the Baúna oil project and an interest in the Tartaruga Verde oil development. Petrobras filed an appeal against the injunction on 21 November 2016. However, Karoon was informed earlier this week that federal court of Sergipe rejected Petrobras’ appeal from 21 November, to lift the injunction, with the sales process of Baúna and Tartaruga oil projects remaining suspended.
Karoon said it is now required to file its defense in respect of the main court proceedings during February 2017. Karoon is currently taking advice regarding this, any decision will likely be made in the new year.
“Petrobras disputes the allegations and has announced the sales process was conducted in compliance with the stages laid down in Petrobras’ Divestment System, which in turn complies with the simplified bidding mechanism outlined in Decree No. 2745/1998, and guaranteed extensive competition among potential interested parties, as a means of ensuring the best deal for the company,” Karoon said in a statement.
Baúna field has been operating since February 2013 and currently produces about 45,000 b/d. Tartaruga Verde is in initial development stages, with significant investments yet to be made.The sale of Baúna and Tartaruga Verde fields was carried out through a competitive process, and is part of Petrobras' 2015-2016 divestment plan.
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