Billionaire Andre Esteves' Brazilian Bank. Grupo BTG Pactual SA has entered into an agreement to form a joint venture firm with Petroleo Brasiliero SA. The said venture is worth US$1.5 billion and is the latest foray of the bank into the African oil market.

Under the provisions of the joint venture agreement, BTG would be assuming half of the ownership of Petrobras's interests in Tanzania, Nigeria, Namibia, Gabon, Benin and Angola. The venture would go into oil and gas exploration and production. These were included in the documents filed by the bank based out of Sao Paulo with regulatory authorities last June 14.

The sale of the African interests is part of the program of the state controlled oil firm to divest nearly US$9.9 billion as it refocuses its efforts to oil reserve developments off the Brazilian coast. 

On the other hand, BTG is undertaking a diversification process of its portfolio after it had conducted its US$1.93 billion IPO last year. Just recently, the bank had announced the opening of a US$1 billion public equity fund that would invest in Africa.