Petrobras Sells Stake in Africa Unit

Thursday, November 1, 2018

Brazil's Petroleo Brasileiro SA will sell its 50 percent stake in a Nigerian oil and gas exploration venture to a consortium led by top oil trader Vitol for $1.53 billion, the latest step in the state-controlled oil company's debt reduction drive, according to a securities filing on Wednesday.

The other 50 percent stake in Petrobras Oil and Gas BV, also known as Petrobras Africa, is owned by Brazilian investment bank BTG Pactual, which in a Wednesday filing confirmed a Reuters report that it would likely hang on to its portion after previously mulling a sale.

Petrobras, one of the world's most indebted oil majors, had targeted $21 billion in asset sales for 2017 and 2018, but only succeeded in unloading $9.5 billion worth by the end of the first half.

The deal involves a stake in some of two deepwater exploration blocks that are among Nigeria's largest and lowest-cost fields. Swiss-based Vitol is expected to shoulder the largest part of the investment, spending an estimated $1 billion, according to a Reuters report in June about the oil trader's interest.

Vancouver-based Africa Oil Corp and Delonex Energy, an Africa-focused oil company, are members of the consortium.

Petrobras earlier this year sold a 25 percent stake in Roncador, one of Brazil's largest oil fields, to Norway's Equinor ASA for about $2 billion.

It is also in talks to sell its TAG gas pipeline unit, probably to a group led by France´s Engie SA, for more than $7 billion, although the process has been halted by a Brazilian Supreme Court injunction.

A source with direct knowledge of Petrobras' operations told Reuters on Tuesday that the oil company wished to obtain an additional $20 billion through asset sales through the end of next year.


(Reporting by Marcelo Rochabrun; Editing by Chris Reese and Peter Cooney)

Categories: Contracts Finance Offshore Energy Deepwater Industry News Africa

Related Stories

Shelf Drilling to Consolidate Jack-Up Fleet and Resolve Funding Gaps via Triangular Merger

Allseas Hooks $180M Pipeline Installation Job Offshore Philippines

CNOOC Ticks Another Milestone in Ultra-Deepwater Gas Exploration

New Partner Joins Timor-Leste Offshore Gas Development

Transocean Scoops $123M Drillship Deal in India

Izomax Wins a Milestone Contract with Shell

Equinor Picks SHI as Preferred Supplier for Korean 750 MW Floating Wind Project

Borr Drilling Scoops $332M in Three Jack-Up Rig Contracts

China’s CNOOC Hits ‘High Yield’ Well in in Beibu Gulf

South Korea's KOMIPO Cancels Plans for LNG Import Terminal

Current News

Velesto Completes Removal of Wrecked Naga 7 Jack-Up Rig Off Malaysia

BP Greenlights $7B CCUS Scheme Tied to Indonesia LNG Facility

Sapura Scoops Petrobras Contract for Pan-Malaysia Offshore Services

Velesto’s Drilling Rigs Up for Automatization Overhaul Under New Tech Alliance

US Firm Finds Chinese Partner to Deliver Mobile Offshore Drilling Units

TotalEnergies and Oil India to Jointly Tackle Methane Emissions Issues

Keppel Reclaiming Control of 13 Rigs to Cash In on Offshore Drilling Market's Growth

Global Offshore Wind Stumbles to the End of '24

Seatrium Delivers Fifth Jack-Up to Borr Drilling

Malaysia's FPSO Firm Bumi Armada Eyes Merger with MISC’s Offshore Unit

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com