Asset A&D

Petrobras to Divest Stake in the Albacora and Albacora Leste Concessions

By Kunal Raj
September 28, 2020
a minute read

Brazilian national oil company Petroleo Brasileiro SA (Petrobras) has commenced a sale process for divesting its entire stake in the Albacora and Albacora Leste fields located in the Campos basin, offshore Brazil.

The Albacora concession covers an area of 455 sq. km located about 110 km off the coast of Cabo de São Tomé, in water depths ranging between 100 to 1,050 m. The Albacora field had average daily production of approximately 42.9 thousand barrels of oil equivalent per day (Mboe/d) during August 2020, of which about 90% is oil. The concession also contains the Forno discovery. Petrobras holds a 100% operated interest in the field.

The Albacora Leste concession covers an area of 511.56 sq. km and is located about 120 km off the coast of Cabo de São Tomé, in water depths ranging between 1,000 to 2,150 m. The concession produced approximately 33.7 Mboe/d during August, of which about 89% is oil. Petrobras holds a 90% operated interest in the field, with Repsol Sinopec Brasil SA holding the remaining 10%.

Petrobras has announced several asset sales since it initiated a privatization plan in 2015, following several corruption scandals that involved allegations against several company officials for paying bribes and accepting kickbacks in exchange for awarding contracts. The company has also been adversely affected by depressed domestic demand in Brazil due to the Covid-19 pandemic.

Key information about the Albacora and Albacora Leste concessions, 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 October 16th.

Scotiabank Brasil is acting as financial advisor to Petrobras for the sale process.

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