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    Brazil's Petrobras closes on field sale

Summary

The company unloaded its 50% stake in a field with two gas discovery wells.

by: Daniel Graeber

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Complimentary, Natural Gas & LNG News, Americas, Corporate, Mergers & Acquisitions, News By Country, Brazil

Brazil's Petrobras closes on field sale

Brazilian energy company Petrobras said June 14 it closed on an August 2020 deal to sell its 50% stake in the onshore Do-Re-Mi field, which has two gas discovery wells.

Petrobras said it finalised the sale of the field, which is located in the broader Sergipe-Alogoas basin in the Brazilian state of Sergipe. Brazilian company Centro-Oeste Oleo e Gas (Midwest Oil and Gas) was the buyer.

Do-Re-Mi has two gas discovery wells, though Petrobras offered no reserve or production estimate.

“This transaction is aligned with the strategy of portfolio optimization and the improvement of the company's capital allocation, increasingly concentrating its resources on world-class assets in deep and ultra-deep waters, where Petrobras has demonstrated great competitive edge along the years,” the company said.

Petrobras reported net income attributable to shareholders of $231mn in Q1 2021, a marked improvement from a $732mn loss recorded during the same period last year, but well below the $5.4bn in Q4 2020 profits.

Positive cash flow came in at $5.6bn, while debt reduction of $18.3bn brought its burden down to $71bn.

The company reported net Q1 revenue of $15.7bn, nearly 13% higher than Q4 and attributable mainly to an increase in crude oil prices. Revenue in Q1 2020, however, was $17.1bn.

Production averaged 2.77mn barrels of oil equivalent/dat in the three-month period. Petrobras blamed the y/y fall on divestments and natural decline. It estimates that 11% of its upstream portfolio has reached peak production and entered the decline phase.

From its pre-salt basins offshore, the company said production was 7% higher than during Q4 2020, in part due to the start of operations at the Atapu field.