Russia's TNK-BP in Amazon venture

18th July 2011, Comments 0 comments

Russia's third-largest oil company TNK-BP said Monday it haw agreed to partner Brazil's HRT Oil & Gas on an Amazonian oil exploration project holding some 800 million barrels of oil and gas.

The British-Russian joint venture said the value to the transaction would "depend on future performance of the assets" and provided no financial details.

It said that some 21 oil and natural gas blocks are located in the Amazon's Solimoes basin -- a region where the Brazilian energy independent began its second exploration well last month.

The deal is part of a so-called "farm-out agreement" that TNK-BP reached with Brazil's previous project partner Petra Energia. Dow Jones Newswires said the project would be operated by HRT Oil & Gas.

"We are pleased to have successfully completed negotiations with Petra Energia regarding a farm-out agreement for the Solimoes concession in Brazil," TNK-BP chief executive Michael Fridman said in a statement.

"Negotiations on this project are still ongoing and a number of additional agreements have to be negotiated with the Solimoes operator and majority partner, HRT," he said.

"Management hopes to have these agreements finalised before the end of August and submit the entire investment for Board approval by September."

The company said initial production from the fields -- which are estimated to hold 783 million barrels of crude oil equivalent -- is tentatively scheduled to begin next year.

© 2011 AFP

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