GDF Suez has signed an asset purchase agreement (APA) with Vale SA, one of the largest metals and mining company in the world, to acquire its 20% participating interest in two gas exploration blocks in the Parnaiba onshore basin, located in the North East of Brazil. Signing of the APA marks the first entry of GDF Suez into the exploration-production activities in Brazil.
Blocks 2 and 3 cover an area of 3067 km² and 3065 km² respectively in a region relatively under-explored, with high potential of natural gas. These licenses were awarded in March 2008 as part of the ninth exploration bid round to Vale (20%), BP (40%, operator of block 2) and Petrobras (40%, operator of block 3). One exploration well in each of these two blocks is scheduled by March 2014.
Didier Holleaux, CEO of GDF Suez E&P International, said that the acquisition represented the beginning of exploration and production activities in Brazil for the company. "This transaction," he said, "allows us to work with experienced partners, in a region which is still under-explored but which has a clear potential for natural gas”.
Maurício Bähr, GDF Suez Country Manager in Brazil, said that “The combination of GDF Suez international experience in exploration-production activities and our significant presence in the Brazilian electricity market represents a strong position for the Group in Brazil. We expect natural gas to play a key role in the Brazilian energy mix going forward, and therefore direct access to gas is an important enhancement to GDF Suez position in the country.”
Adapted from press release by Ted Monroe
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