Petrobras to Divest Stake in the BM-S-51 Concession, Offshore Brazil
Brazilian national oil company Petroleo Brasileiro SA (Petrobras) has commenced a sale process for divesting up to 100% of its operated stake in the BM-S-51 Concession located in the Santos basin, offshore Brazil.
Petrobras acquired an 80% operated interest in the concession in 2005 during the seventh bidding round conducted by the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP). Repsol Sinopec Brazil SA holds the remaining 20%. Petrobras intends to divest at least half its stake.
The BM-S-51 Concession covers an area of approximately 698 sq. km located 215 km off the coast of São Paulo, in water depths ranging between 350 – 1,650 m. The concession is currently in the initial exploratory period, with a pending commitment of drilling one well in order to comply with the minimum work program.
“This transaction is in line with the portfolio optimization strategy and the improvement of the company’s capital allocation, increasingly concentrating its resources in deep and ultra-deep waters, where Petrobras has demonstrated great competitive edge over the years,” the company said in a press release that announced the start of the sale process.
Key information about the BM-S-51 concession as well as the eligibility criteria for the selection of potential participants in the sale process are available in the opportunity teaser published on the Petrobras website. Expressions of interest are due to be submitted by August 24th, 2020.