Bloomberg News

HRT to Complete TNK-BP Partnership by End 2011, CEO Says

October 24, 2011

(Updates to include additional comments from HRT in the third paragraph.)

Oct. 24 (Bloomberg) -- HRT Participacoes em Petroleo SA will complete a partnership agreement with OAO TNK-BP Holding to develop oil and natural-gas fields in the Amazon, HRT Chief Executive Officer Marcio Mello said.

The $1 billion deal, which Mello said on Oct. 4 was closed, will be done in a few weeks, the CEO told reporters in Sao Paolo today. Progress on the transaction is “going well,” he said.

HRT is completing paperwork to have TNK-BP buy a 45 percent stake in exploration areas in the Solimoes Basin and there aren’t any disagreements with Russia’s third-largest oil producer, an official at HRT’s press office, who declined to be named due to company policy, said in a telephone interview from Sao Paulo.

TNK-BP is buying assets in Brazil’s Amazon as part of an effort to expand overseas amid limited access to domestic fields. HRT is looking at options to transport natural gas out of the Amazon because the only existing pipeline in the area, owned by state-controlled Petroleo Brasileiro SA, doesn’t have spare capacity, Mello said.

HRT fell 7.5 percent, or 60 reais, to 745 reais in Sao Paulo at 1:27 p.m. New York time. HRT has fallen 53 percent so far this year, compared with an 18 percent drop in the Bovespa stock index.

--Editors: Jessica Resnick-Ault, Charles Siler

To contact the reporters on this story: Katerina Petroff in Sao Paulo at kpetroff@bloomberg.net; 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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