Petrobras signs farm-out deal with Shell in Tanzania

4 October 2011, Sweetcrude, Dar es Salaam – Brazilian oil giant, Petrobras, said late on Monday that it has granted supermajor Shell a 50% interest in two blocks in Tanzania under a farm-out agreement.

Petrobras said it will remain the operator of Blocks 5 and 6, located off Tanzania in the Indian Ocean in water depths ranging from 600 to 3000 metres.

Financial terms of the deal were not disclosed.

Prior to the transaction, Petrobras’ Tanzania subsidiary held a 100% interest in each of the blocks.
National oil company, Tanzanian Petroleum Development Corporation, is the concessionaire of both blocks, Petrobras said.

Petrobras is currently drilling the Zeta-1 well in Block 5. Work there is expected to be finished by the end of the year.

A 3D seismic shoot is currently underway at Block 6, Petrobras said.

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