By Libby George and Ron Bousso
LAGOS/LONDON, Nov 1 (Reuters) - Oil trader Vitol VITOLV.UL
has quit a consortium that was set to buy a stake in two
Nigerian oil fields from Brazil's Petrobras PETR4.SA , its
former partner said on Friday.
Africa Oil AOI.TO said it would conclude the $1.5 billion
purchase alone after Vitol and Delonex Energy pulled out of the
deal to buy half of Petrobras Oil and Gas, known as Petrobras
Africa, from the Brazilian company. [https://reut.rs/337lQXN
"We remain committed to completing this acquisition and look
forward to working with Petrobras and all stakeholders to
accomplish that goal," Keith Hill, chief executive of
Vancouver-based Africa Oil, said in a statement.
Africa Oil said the deal will go ahead under the previously
agreed terms. It has agreed a $250 million loan facility with
BTG Pactual and will fund the rest with available cash.
BTG, Brazil's largest independent investment bank, owns the
other 50% stake in Petrobras Africa, whose core assets are
stakes in offshore fields that produce Nigerian oil grades
Agbami, Egina and Akpo. Vitol did not issue a statement on the withdrawal.
A source close to Vitol said the deal was taking too long to
close, including the wait for necessary clearances from
Brazilian and Nigerian officials.
Two sources close to the deal also said Vitol soured on it
in part because it would not have got physical oil cargoes from
it. "At the end of the day, it was a non-core business for
Vitol, so they walked away," one source said.
The sale is part of a Petrobras effort to offload $21
billion in assets amid heavy debts and a corruption scandal.
The Petrobras Africa assets include an 8% interest in OML
127, which includes Agbami, and 16% interest in OML 130, which
contains Akpo and Egina. A Chevron CVX.N affiliate operates
OML 127, while Total TOTF.PA affiliates operate OML 130.
Akpo produces 130,000 barrels per day (bpd) of condensate,
while Egina, which started last year, will produce roughly
200,000 bpd. Agbami, with 240,000 bpd of light, sweet crude, is
the most prized part of the asset.
David Round, E&P analyst with BMO Capital Markets, said
despite Vitol's exit, it remains an attractive deal.
"Africa Oil's decision to become sole acquirer (and ability
to fund) illustrates the impressive level of cash generation
from the assets, although we expect the market to remain
cautious as completion is still pending after 12 months," Round
said.