PERTH (miningweekly.com) – ASX-listed Karoon Gas Australia will reinitiate the process to acquire Petrobas’s Baúna and Tartaruga Verde fields after the current sales agreement was withdrawn.

Karoon in October 2016 confirmed the award of the right to negotiate a final agreement with Petrobas over the Baúna and Tartaruga Verde fields; however, by November, court proceedings were initiated against the potential sale of the assets, alleging that Petrobas had not followed the correct sales procedure.

Petrobas has now told Karoon that the sale process for the Baúna and Tartaruga Verde fields has been withdrawn.

Karoon told shareholders on Thursday that Petrobas had also informed the company that it intended to reinitiate a sales process for the assets, this time adhering to a revised divestment process methodology which complied with the Brazilian Federal Accounting Court’s requirements.

“It is disappointing that Karoon is no longer in exclusive negotiations to the acquisition of Baúna and Tartaruga. The court proceedings, which are yet to be heard, made the timing and outcome of the sales process uncertain,” said Karoon MD Robert Hosking.

“Reinitiating the divestment process under Petrobas’s revised methodology will help to reduce the risk of any future court action against a potential sale, providing greater certainty for the successful bidder.”

Hosking said Karoon remained engaged with interested potential partners and was committed to any future process relating to these assets.

“Based on Petrobas’s exciting divestment programme targets and the recent court ruling, Karoon believes any reinitiated process relating to these assets could be imminent.”

Baúna field has been operating since February 2013 and currently produces about 45 000 bbl/d. Tartaruga Verde field is in initial development stages, with significant investments yet to be made.