Oil & Gas - Brazil

Koch to Buy ATP Petroleo

Koch to Buy ATP Petroleo

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Canadian oil company Koch Exploration, a unit of Wichita-based Koch Industries, is in negotiations with Brazil's Paranapanema Group to acquire local oil company ATP Petroleo, a Koch spokesperson confirmed to BNamericas.com.

The spokesperson would not give further details of the transaction nor a date by when the companies expect to close negotiations. "We are still negotiating with ATP. We want to establish a base of operations in Brazil with the purchase and are actively considering other acquisitions in the country," the spokesperson said.

ATP Petroleo is a small-sized oil company and is the only Brazilian company that has been producing oil in Brazil since the mid-80's besides Brazil's state oil company Petrobras. ATP controls onshore fields Ponta do Mel, Serra Vermelha, Redonda and Noroeste do Morro do Rosado, which produce some 700 barrels per day.

Brazilian monthly Brasil Energia quotes sources linked to the sale process that said the sale would total some US$20mn.

Part of ATP's capital will be divided with two other associates, Aspen Group and Exinvest, after closing the transaction, according to Brasil Energia, adding that that Koch would also be interested in taking part of other offshore fields in Brazil's Potiguar basin in association with Petrobras. The source would not confirm this information.

Koch Exploration recently participated in Brazil's second oil licenses round, and presented two unsuccessful bids for exploration blocks.