Petrobras grants share in Tanzania blocks to Shell

Mon Oct 3, 2011 6:47pm EDT

Related Topics

* Brazilian firm grants 50 pct share in two blocks

* Petrobras to continue as operator of blocks

SAO PAULO Oct 3 (Reuters) - Brazilian state-owned oil giant Petrobras (PETR4.SA)(PBR.N) said on Monday it has agreed to grant 50 percent of its interest in two blocks in Tanzania to Shell Deepwater Tanzania BV.

Financial details of the transaction were not available.

The blocks 5 and 6 are located offshore Tanzania, in the Indian Ocean, at water depths ranging from 600 to 3,000 meters, Petrobras said in a statement.

The company's local subsidiary owned 100 percent of each block and will now remain as their operator.

A well is currently being drilled in block 5, and the work is expected to be completed by the end of the year. Meanwhile, the seismic interpretation work is still underway for block 6.

Petrobras said Shell will proportionally reimburse for Petrobras' investments made so far at the blocks. (Reporting by Inae Riveras; editing by Carol Bishopric)

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