Petrobras sells $10.3 billion worth of assets

Brazilian oil and gas giant Petrobras has executed three sale and purchase agreements to sell assets in the total amount of $10.3 billion (about R$40 billion).

FPSO Cidade de Campos dos Goytacazes / Photo by José Augusto Alves/Agência Petrobras

In 2019, considering the signed transactions and the closed one, the total amount of asset sales is $11.3 billion, Petrobras said on Thursday announcing the agreements.

CEO Roberto Castello Branco commented: “Today is an important day for Petrobras with the execution of three relevant transactions. Continued portfolio management contributes to improving capital allocation, thereby increasing value creation for our shareholders, as well as making it possible to reduce the company’s indebtedness and cost of capital.”

The transactions include the sale of 90% of Petrobras stake in the Transportadora Associada de Gás S.A. (TAG) to the group formed by ENGIE and the Canadian fund Caisse de Dépôt et Placement du Québec (CDPQ).

Furthermore, Petrobras has sold a 50% working interest in Tartaruga Verde field (BM-C-36 Concession) and Module III of Espadarte field, both located in deep waters of the Campos Basin, offshore Brazil, to Petronas.

Finally, the transactions include the sale of Petrobras’ full stake in 34 onshore production fields in Rio Grande do Norte to Potiguar E&P S.A., a subsidiary of Petrorecôncavo.

 

TAG sale 

 

The transaction value is approximately $8.6 billion, considering the adjustments agreed in contract, and will be paid on the transaction closing date. This amount includes the payment, by the buyer, of TAG debts with the BNDES of approximately $800 million.

TAG operates in the natural gas transportation sector, presently holding long-term authorizations to operate and manage a pipeline system of about 4,500 km in length and 74 million m3/day of transport capacity, located primarily in the North, Northeast and Southeast regions of Brazil. Petrobras will continue to use natural gas transportation services rendered by TAG, through contracts already in force between the two companies, with no impacts on its operations and the delivery of gas to distributors and other customers.

 

Tartaruga Verde & Module III of Espadarte field 

 

The value of this transaction amounts to $1.29 billion, to be paid in two tranches. About $258.7 million was paid right away and $1.034 billion on the transaction closing date, subject to adjustments. Petrobras will maintain 50% working interest and the operatorship of the fields.

Tartaruga Verde field started operations on June 22, 2018, via the FPSO Cidade de Campos dos Goytacazes and currently produces approximately 103 thousand bpd of oil and 1.2 million m³/day of gas.

In a separate statement on Friday, Malaysia’s Petronas said: “The acquisition of equity in Tartaruga Verde and Module III of Espadarte fields marks an important milestone for Petronas as the company diversifies and expands its oil business portfolio in South America.”

The Module III is an area of Espadarte field to be developed in an integrated way with Tartaruga Verde field, with first oil expected in 2021.

 

Sale of 34 onshore production fields

 

The total amount of the third transaction is $384.2 million. It will be paid in three installments: i) $28.8 million was paid on Thursday; ii) $293.9 million at the closing date, subject to adjustments; and (iii) $61.5 million as earn-out linked to the approval, by the National Agency for Petroleum, Natural Gas and Biofuels (ANP), of the contractual term extension of 10 of the 34 concessions under the transaction.


Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Offshore Energy Today, established in 2010, is read by over 10,000 industry professionals daily. We had nearly 9 million page views in 2018, with 2.4 million new users. This makes us one of the world’s most attractive online platforms in the space of offshore oil and gas and allows our partners to get maximum exposure for their online campaigns. 

If you’re interested in showcasing your company, product or technology on Offshore Energy Today contact our marketing manager Mirza Duran for advertising options.

Share this article

Follow Offshore Energy Today

Events>

<< May 2019 >>
MTWTFSS
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

08th OIL & GAS AFRICA 2019 CONFERENCE

OIL & GAS AFRICA is one of the most prime regional & international Oil and Gas conferences in East Africa…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

OWI WA 2019

West Africa’s only dedicated Offshore Well Intervention Conference is returning for its second year…

read more >

OIL & GAS PHILIPPINES 2019

Oil & Gas Philippines event display products like Oil & gas, fire protection systems and materials…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply