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Petro Rio Buys Chevron's Frade Field in Brazil Expansion

The local explorer is said to pay more than $500 million
Petro Rio shares rose as much as 14 percent in Sao Paulo

An employee stands behind a service bar at the Chevron Corp. trade stand during the Rio Oil & Gas 2014 Expo and Conference in Rio de Janeiro, Brazil, on Monday, Sept. 15, 2014. Petroleo Brasileiro SA, Brazil's state-run oil company, extended losses as an economic adviser to presidential candidate Marina Silva said she would increase a tax on gasoline if elected in next month's vote.Photographer: Kristian Helgesen

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By Sabrina Valle

January 30, 2019 at 10:00 AM UTC

Updated on

January 30, 2019 at 5:27 PM UTC

This article is for subscribers only.

Independent Brazilian oil producer Petro Rio SA will take control of the Frade field off the country’s coast after agreeing to buy Chevron Corp.’s 52 percent stake, and more acquisitions may be on the way. Petro Rio’s shares surged.

Petro Rio will own 70 percent of Frade and have control of operations, becoming the largest Brazil-based independent oil producer in the country, with an estimated output of 28,000 barrels of equivalent oil a day, it said in a statement. It also owns stakes in the producing fields Polvo and Manati. Shares rose as much as 14 percent in Sao Paulo.