Petrobras to sell 37 oilfields for $823 million

Petrobras to sell 37 oilfields for $823 million

Petrobras to sell 37 oilfields for $823 million

/ Financial News / Thursday, 06 December 2018 07:15

Petrobras announced the sale of its exploration rights on 37 offshore oil blocks in Brazil, three to the Franco-British group Perenco and 34 to the Brazilian 3R Petroleum, for a total amount of $823.1 million, continuing its policy of asset transfer.

Perenco obtained exploration for three blocks in shallow waters off Rio de Janeiro for $370 million. Petrobras said in a statement that, under the agreement, $34 million will be paid upon signing with the remaining amount to be paid at the closing of the transaction.

The Brazilian state-owned company pointed out that “the Pargo, Carapeba and Vermelho blocks, which form the northeast pole of Rio Bay (...) produce an average of 9 000 barrels a day”.

Present in Brazil since 2008, Perenco already holds exploration rights off the neighboring state of Espirito Santo, north of Rio de Janeiro. Brazilian company 3R Petroleum paid $453.1 million to explore 34 blocks off the Rio Grande do Norte in northern Brazil, which currently produce 6 000 barrels a day.

Both transactions are part of a large asset divestment plan aimed at curbing the company's high debt, which suffered heavy losses from 2014 to 2016, due to a massive corruption scandal and the fall of oil price.

Brazil's President-elect Jair Bolsonaro, who will take office on January 1st, has pledged to implement a major privatization plan.

This would not affect Petrobras' core business, although some asset sales such as the exploration rights sold are expected to continue.

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