Bloomberg News

Brazil’s HRT Rises Most in Two Weeks on $1 Billion Oil Deal

September 29, 2011

(Updates with closing stock prices.)

Sept. 29 (Bloomberg) -- HRT Participacoes em Petroleo SA, a Brazilian oil company exploring in the Amazon and Namibia, gained the most in two weeks after TNK-BP agreed to pay $1 billion for a stake in its Brazil exploration areas.

HRT rose 7.7 percent to 785 reais in Sao Paulo trading at 4:15 p.m. New York time. The stock has fallen 51 percent so far this year.

TNK-BP, Russia’s third-largest oil producer, agreed to buy a 45 percent stake in exploration blocks in the Solimoes Basin where HRT recently found signs of oil and will complete the transaction in two to three weeks, Sergey Funygin, head of TNK- BP’s Venezuela division, said yesterday at an oil conference in Puerto la Cruz, Venezuela.

TNK-BP Chief Executive Officer Mikhail Fridman will travel to Rio this week to complete the deal after the boards of both companies approved the terms, an official at HRT’s investment relations department, who declined to be named because of company policy, said in a telephone interview today.

TNK-BP is buying the stake from Petra Energia SA, HRT’s original partner in the blocks, through an accord giving HRT the right to buy Petra’s stake. TNK-BP is seeking opportunities in Brazil, Africa, the Middle East and Latin America to diversify operations, Funygin said.

--With assistance from Eduardo Thomson in Santiago. Editors: Robin Saponar, Laura Price

To contact the reporter on this story: Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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