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    Petrobras offloads more fields

Summary

The Brazilian energy company has been on a divestment streak for much of the year.

by: Daniel Graeber

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Complimentary, Natural Gas & LNG News, Americas, Corporate, Investments, Financials, News By Country, Brazil

Petrobras offloads more fields

Brazilian energy company Petrobras said December 6 it sold onshore oil and gas acreage to a subsidiary of Brazilian independent operator PetroReconcavo.

Petrobras said it concluded the sale of nine onshore oil and production fields in the Miranga Cluster to SPE Miranga, a subsidiary of PetroReconcavo. The plays, located in the Brazilian state of Bahia, have an average production rate of 691,000 barrels/day of oil and 362,300 m3/d of natural gas.

The deal, announced early this year, was concluded with the payment of $47.7mn to Petrobras. Subject to adjustments, the Brazilian company added that it was still owed payments of some $80mn to be paid off in instalments and another $85mn of contingent payments related to the future price of oil.

“This transaction is aligned with the company's strategy of portfolio management and capital allocation improvement, aiming to maximise value and provide greater return to society,” Petrobras added.

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

A high level of cash generation and solid liquidity, meanwhile, led the company to approve a $6bn total payout to shareholders for 2021, which works out to be about $0.43/share.