• Natural Gas News

    Petrobras gets binding offer for offshore fields

Summary

The company said it received a $4bn offer for fields in the Campos Basin.

by: Daniel Graeber

Posted in:

Complimentary, Natural Gas & LNG News, Americas, Corporate, Contracts and tenders, News By Country, Brazil

Petrobras gets binding offer for offshore fields

Brazilian energy company Petrobras said September 30 it received binding offers in excess of $4bn for its stake in the offshore Albacora and Albacora Leste fields.

A consortia including Brazil’s PetroRio and US-based EIG Global Energies Partners took advantage of the divestment streak from Brazil’s Petrobras by making binding offers for the fields in the offshore Campos Basin.

“The company is analysing them according to the evaluation criteria of this project, considering all value components and other conditions reflected in the offers, including firm and contingent payments and other relevant contractual conditions,” Petrobras said. “The start of the negotiation phase will be submitted for deliberation by the company's executive board, after the conclusion of the analysis of the offers.”

The fields hold reserves in excess of 565mn barrels of oil and 10bn m3 of natural gas.

The Brazilian national energy company is in the midst of a sweeping divestment programme aimed at paying down its debt and freeing up capital for deepwater offshore projects.

The company reported free cash flow of $9.3bn, up from the $5.6bn realised during Q1 2021 and a vast improvement over the $3bn posted during Q2 2020.

In what it described as a “teaser,” part of the preliminary disclosure phase, the company said in early September it wanted to sell off its entire 100% stake in the Urugua and Tambau fields off the coast of Rio de Janeiro. The company said the potential sales includes the Uragua-Mexilhao natural gas pipeline, which extends some 174 km from the Urugua field to a nearby platform.

The fields flowed on average 5,000 barrels/day of oil and 918,000 m3/d in natural gas in 2020.