Petrobras approves sale of its stake in Brazilian oil and gas cluster
Brazilian energy company Petrobras said June 30 it approved the sale of its stake in a group of onshore and shallow-water oil and gas fields for $300mn.
The company, known formally as Petroleo Brasileiro, said it would go ahead with the sale its total interest in seven production concessions, collectively forming the Alagoas cluster, in the coastal state of Alagoas, to its Brazilian counterpart Petromais Global Exploracao e Producao (Petromais Global Exploration and Production, or simply Petro+).
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“This transaction is in line with the portfolio optimisation strategy and the improvement of the company’s capital allocation, increasingly concentrating its resources in world-class assets in deep and ultra-deep waters, where Petrobras has demonstrated great competitive edge over the years,” Petrobras explained.
Signing and completion of the deal would come in “due course,” the company added.
Petrobras said that, from January to May, the cluster averaged 1,900 b/d in oil and condensate and 602,000 m3/d in natural gas.
Petrobras is on a major divestment streak, seeking buyers for various upstream, midstream and downstream assets to reduce its leverage and raise capital for investing in its deepwater offshore fields.
The company in April sold its remaining 10% stake in natural gas transportation company Nova Transportadora do Sudeste (NTS) to Nova Infraestrutura Gasodutos Participacoes, a company formed by an investment fund that already holds a controlling interest in NTS.
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.