July 25, 2020 / 3:49 PM / 10 days ago

Petrobras, Karoon agree on changes to terms of $665 million sale of Baúna field stake

FILE PHOTO: A logo of Brazil's state-run Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio Moraes/File Photo

SAO PAULO (Reuters) - Brazilian oil company Petróleo Brasileiro SA (PETR4.SA) announced adjustments to a $665 million contract governing the sale of its entire stake in the Baúna oil field to Australia’s Karoon Energy, according to a securities filing late on Friday.

The Bauna field is in the Santos basin in the Atlantic Ocean.

Under the new terms, Karoon (KAR.AX) is paying an initial $380 million to Petrobras (PETR4.SA), including a $49.9 million downpayment made on July 24 and $150 million to be paid at the closing date of the deal, which depends on certain conditions being met.

The remainder of the $380 million will be paid in 18 monthly installments from the transaction’s closing date, Petrobras said.

An additional installment of $285 million would be paid through 2026, the filing said.

The terms of the deal were changed because of the COVID-19 pandemic, which made it difficult to meet previously agreed conditions.

Reporting by Ana Mano; Editing by Steve Orlofsky

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