Canadian corporation Pacific Exploration and Production announced it is selling its 35% stake in the Karoon Blocks concession offshore Brazil.
The buyers are Karoon Gas Australia and its subsidiary Karoon Petroleo & Gas.
Pacific Exploration and Production has been looking to improve its liquidity after applying for insolvency protection in April.
A total of five blocks in the Santos Basin will be sold for $15.5m in cash with the possibility of $5m more if and when production reaches the 1-million-barrel mark.
Pacific Exploration has long had oil production interests in Latin America with its main focus on Colombia, Peru and Guatemala.
The Karoon Blocks sale still needs approval from Brazil’s National Agency of Petroleum, Natural gas and Biofuels, and from the Superior Court of Justice in Ontario, among other conditions.
