Petrobras Launches Sale Process for 7 Sergipe-Alagoas Concessions
Brazilian national oil company Petroleo Brasileiro SA has launched a sale process for divesting its 100% stake in 7 concessions in the Sergipe-Alagoas basin.
The concessions, located both offshore and onshore in the State of Algoas, are jointly referred to as the “Pole”, as they are organized in a Pole aimed at providing operational autonomy and optimizing the use of existing oil & gas infrastructure.
The concessions include the Paru offshore block, and the Anambé, Arapaçu, Cidade de São Miguel dos Campos, Furado, Pilar, and São Miguel dos Campos onshore concessions. Average daily production from the cluster during 2019 was approximately 7,386 barrels of oil equivalent per day (boe/d), of which 68% is gas.
Along with the producing fields, Petrobras is also selling its 100% stake in natural gas plant with a processing capacity of 2 million cubic meters per day (MMcm/d). The plant currently processes all of the gas produced by the Pole concessions.
The sale is part of the state-owned company’s ongoing program to sell non-core assets to reduce its current debt burden, while focusing on the development of its resource rich deep and ultra-deep water fields located off the coasts of Rio de Janeiro and Sao Paulo states.
Bids for the Pole concessions are due by July 6th, 2020. The opportunity teaser, which includes key information about the assets as well as the eligibility criteria for the selection of potential participants in the sale process, is available on the Petrobras website.
JP Morgan is acting as exclusive financial advisor to Petrobras for the sale.