Brazilian oil company PetroRio has agreed to sell its 49 percent stake in Amazon oil and gas exploration blocks in the Solimoes Basin to Russian partner Rosneft for $55 million, a source familiar with talks told Reuters on Sunday. The deal, which still needs regulatory approval, marks the end of exploration in the Amazon rainforest for PetroRio, formerly known as HRT, which is focusing on mature, oil-producing assets in an effort to cut down exploratory risks.
A year ago PetroRio transferred a controlling interest in the Solimoes blocks to Rosneft, which struck a deal with Brazil's state-run oil company Petrobras to find ways to sell the natural gas trapped in remote parts of the Amazon. Exploiting Amazon gas is difficult because of the distance from major population centers and the difficulty of building pipelines in the jungle.