Petrobras reported yesterday that it completed the sale to Petrovida Holding B.V. (Petrovida) of the 50% equity interest held by Petrobras International Braspetro B.V. (PIBBV) in Petrobras Oil & Gas B.V. (PO&GBV).

The transaction involved a total amount of US$ 1.530 billion, which was adjusted to US$ 1.454 billion,reflecting the incidence of interest on the acquisition price and the deduction of Petrobras’ portion from the payment of fees for approval of the transaction by the Nigerian Government. From the total of US$ 1.454 billion, Petrobras has received US$ 1.030 billion as dividends from PO&GBV, as of the base date of the transaction (01/01/2018), and is receiving today US$ 276 million; remaining to receive US$ 123 million, subject to update, as soon as the redetermination process of the Abgami field is implemented and US$ 25 million up to 06/30/2020.

PO&GBV dividend distribution is in line with the strategy of anticipating the asset monetization and was possible due to PO&GBV's operational generation and gross debt increase, which raised from US$ 800 million on 12/31/2017 to US$ 1.825 billion on 12/31/2019.

With the transaction closing, Petrobras fully ceases its operational activities in Africa.

The transaction is in line with the portfolio optimization and improvement of the company's capital allocation, aiming at generating value for its shareholders.

About PO&GBV

PO&GBV is a joint venture in the Netherlands comprising, after completion of the transaction, Petrovida (50%) and BTG Pactual E&P B.V. (50%), with assets located in Nigeria. It has an 8% interest in the OML 127 block, where the Agbami producing field is located, and 16% in the OML 130 block, which includes the Akpo and Egina producing fields, and it is not an operator in either of them. The 2019 average oil production of PO&GBV assets was about 34 thousand bbl/day (Petrobras share).

About Petrovida

Petrovida, a company established to acquire Petrobras' stake in PO&GBV, is wholly owned by Africa Oil Corp (Africa Oil), Canadian publicly traded E&P company. Africa Oil is focused primarily on Africa with deepwater producing and development assets in Nigeria; development assets in Kenya and a portfolio of exploration and appraisal assets in Africa and Guyana. Africa Oil is listed on the Toronto Stock Exchange and on Nasdaq Stockholm.