GDF SUEZ makes first foray into Brazilian exploration market
PARIS -- GDF SUEZ has signed an ‘Asset Purchase Agreement’ (APA) with Vale S.A., one of the largest metals and mining companies in the world, to acquire its 20% participating interest in two gas exploration blocks in the Parnaiba onshore basin, located in the northeast 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 3,067 sq km and 3,065 sq km 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.
“This transaction allows us to work with experienced partners, in a region which is still under-explored but which has a clear potential for natural gas,” said Didier Holleaux, CEO of GDF SUEZ E&P International.
“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,” Maurício Bähr, GDF SUEZ’s country manager in Brazil, added.