Linklaters advises Petrobras on US$2.5 billion in M&A transactions

Deals include $1.1bn Murphy Oil joint venture and $1.4bn sale of African oil unit

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Linklaters has advised Petrobras, Brazil’s state-controlled oil company, on two transactions totaling US$2.5 billion during the month of October.

At the beginning of the month, Linklaters advised Petrobras on the formation of a joint venture (JV) between Petrobras America Inc. (PAI) and Murphy Oil Corporation subsidiary, Murphy Exploration & Production Company – USA. Both companies agreed to contribute their current producing Gulf of Mexico assets to form the JV, with Murphy overseeing the operations with 80% interest and PAI with 20%. The transaction effective October 1, 2018, involves a total amount of up to US$ 1.1 billion to be received by PAI with a cash compensation of US$ 900 in addition to contingent payments up to US$ 150 million.

Corporate partners Alberto Luzárraga, Peter Cohen-Millstein; senior associate Gabriel Silva, and associates Pierre-Emmanuel Perais and Marcelo Lopes provided advice. As well as Tax counsel Shane Milam, Matthew Brigham; and senior associate Michelle Lo.

Most recently, Linklaters advised Petrobras in connection to the sale of its 50% interest in Petrobras Oil & Gas B.V. (PO&GBV) to Petrovida Holding B.V., a consortium led Vitol and comprising Africa Oil Corp, Delonex Energy Ltd., and Vitol Investment Partnership II Ltd. The share purchase agreement was announced on October 31, 2018. The transaction will involve a total amount of up to US$ 1.530 billion, with a cash payment of US$ 1.407 billion, subject to adjustments until the closing of the transaction, and a deferred payment of up to US$ 123 million.

Corporate partner Alberto Luzárraga, senior associates Gabriel Silva, Tai Vivatvaraphol; and associates Isabella Correa and John Wilson provided advice.