Seacrest Petroleo Bermuda Limited: Injunction granted in respect of non-payment of US$71 million to Petrobras

27 Dec 2024 07:00 CET

Rio de Janeiro, Brazil/Hamilton, Bermuda, 27 December 2024: Seacrest Petroleo
Bermuda Limited ("Seacrest Petroleo" or the "Company") announces that its
subsidiaries Seacrest SPE Cricaré S.A. ("SPE Cricaré") and Seacrest Petróleo
SPE Norte Capixaba Ltda. ("SPE Norte Capixaba") obtained overnight an
injunction from a court in Rio de Janeiro, preventing Petróleo Brasileiro S.A.
("Petrobras") from taking any action for 30 days in respect of the non-payment
by SPE Cricaré and SPE Norte Capixaba of an aggregate of US$71 million of
post-closing consideration due to Petrobras on 31 December 2024 for the
acquisitions of the Cricaré and Norte Capixaba Clusters.

The basis of the parties' request for the injunction is the ongoing failure of
Petrobras to fulfil its contractual obligations to complete the subsea
pipeline repairs at the Terminal Norte Capixaba, which has resulted in
US$71.20 million of cumulative damages to the Company to date. As part of the
sale and purchase agreement for the Norte Capixaba Cluster, Petrobras
undertook to complete the repairs, but during the 20 month period since the
April 2023 closing has repeatedly failed to do so. The repairs are necessary
to allow the Company to transport heavy oil through the pipelines and realize
Very Light Sulphur Fuel Oil (VLSFO)-spec pricing for its production.
Petrobras' failure to perform its obligations and repair the pipelines has
forced the Company to sell an off-spec blend of its production at significant
discounts to Brent.

On 16 April 2024, SPE Norte Capixaba sent an indemnity claim letter to
Petrobras in respect of the damages incurred by the Company at that date,
which totaled US$38.78 million. On 13 December 2024, SPE Norte Capixaba sent
Petrobras an updated indemnity claim letter, describing damages that now total
US$71.20 million.

The injunction obtained by SPE Norte Capixaba and SPE Cricaré is an interim
measure that has been taken in advance of the commencement of arbitration
proceedings against Petrobras.

For further information, please contact:

John de los Santos, Head of Investor Relations
Seacrest Petroleo Bermuda Limited
Tel. +44 79 4971 4756
E-mail: john.santos@seacrestpetroleo.com

This information is subject to the disclosure requirements in article 17 of
the Regulation EU 596/2014 (the EU Market Abuse Regulation) and section 5-12
of the Norwegian Securities Trading Act.

About Seacrest Petroleo

Seacrest Petroleo is an independent oil and gas production company with an
integrated portfolio of onshore producing oil fields and export infrastructure
onshore in Espírito Santo, Brazil. The fields have estimated oil and gas in
place volumes of 1.2 billion barrels of oil equivalents and certified 2P
reserves of 144 million barrels of oil equivalents. The Company has exclusive
control over its infrastructure, continuously from field production to
offshore tanker loading terminal, allowing for cost-effective operations, and
enabling direct access to markets for its premium grade products. The Company
has offices in Bermuda, Norway and Brazil.

Important information

Matters discussed in this press release may constitute forward-looking
statements. Forward-looking statements are statements that are not historical
facts and may be identified by words such as "anticipate", "believes",
"continue", "estimate", "expect", "intends", "may", "should", "will" and
similar expressions. The forward-looking statements in this release are based
upon various assumptions, many of which are based, in turn, upon further
assumptions. Although the Company believes that these assumptions were
reasonable when made, these assumptions are inherently subject to significant
known and unknown risks, uncertainties, contingencies and other important
factors which are difficult or impossible to predict and are beyond its
control. Such risks, uncertainties, contingencies and other important factors
could cause actual events to differ materially from the expectations expressed
or implied in this release by such forward-looking statements. The
information, opinions and forward-looking statements contained in this release
speak only as at the date of this release and are subject to change without
notice.

This information has been submitted pursuant to the Securities Trading Act §
5-12 and MAR Article 17. The information was submitted for publication at
2024-12-27 07:00 CET.

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