Vitol-led group to buy Nigeria assets from Petrobras — sources

A consortium led by top oil trader Vitol has entered exclusive talks to acquire stakes in Nigerian offshore fields that are held by Brazil’s Petrobras (PETR4.SA) and its partners, industry sources said.

The assets are estimated to be worth up to $2.5 billion, the two banking sources and one industry source told Reuters.

The buyers are talking to state-controlled Petroleo Brasileiro SA, known as Petrobras, which is leading the sale, the sources added.

The buying consortium comprises Vitol, Vancouverbased Africa Oil (AOI.TO) and Delonex Energy, an Africafocused oil company backed by private equity fund Warburg Pincus and the International Finance Corporation (IFC).

Delonex, Petrobras and Vitol declined to comment. Africa Oil did not respond to a request for comment.

The Vitol-led group emerged as winners from a number of groups that bid for the assets in its initial two rounds, which included rival commodity trader Glencore.

Heavily indebted Petrobras launched the sale of Petrobras Oil & Gas BV, or Petrobras Africa, in which it holds 50 per cent, as part plans to offload $21bn in assets through 2018.

The deal would offer the consortium a stake in some of Nigeria’s largest and lowestcost fields. Vitol is expected to shoulder the largest part of the investment, spending an estimated $1bn, according to one source.

Petrobras Africa has stakes in two offshore blocks, known as OMLs. The Agbami field in OML 127 is operated by an affiliate of U.S. firm Chevron (CVX.N) and the Akpo field in OML 130 is operated by Total SA (TOTF.PA).

Agbami oilfield produces about 240,000 barrels per day (bpd) of light, sweet crude. Petrobras Africa holds a 12.5 per cent stake in the field, Statoil has 20.2 per cent and Chevron holds a 67.3 per cent stake.

The Akpo field produces nearly 130,000 bpd of condensate and Total is also due to start production at the Egina development in OML 130 later this year. [Reuters]