Spotlight: Petrobras on track to surpass divestment goal

Brazil’s state-run oil firm Petrobras is set to surpass the target of its US$26.9bn, 2019-23 divestment program.

Petrobras wants to invest the resources in deepwater oil and gas exploration but also reduce debt and improve leverage levels. 

In the 2017-18, the company could not reach the US$21bn goal.

“Petrobras has an extremely competitive cash flow, but it still has high leverage levels, so it continues with those offers because it wants to be closer to its peers in terms of financial leverage,” Anderson Dutra, an associate member at consultancy KPMG, told BNamericas.

For this year, the latest numbers show that sales amounted to US$11.3bn from January to April - over 40% of the total. Divestments have only accelerated since and could already be close to the 2023 target. 

Moreover, several sales processes started in recent months and are still underway.

BNamericas takes a look at the assets that were sold so far this year:  

PAMPO AND ENCHOVA CLUSTERS 

The US$851mn deal for 10 fields in Campos basin was announced in July and will mark the entrance of London-based Trident Energy into Latin America.

BAÚNA FIELD

Also in July, Australian company Karoon bought the field in Santos basin for US$665mn.  

BR DISTRIBUIDORA  

In the week of the Baúna sale, Petrobras also raised 8.5bn reais (US$2.2bn) in a successful secondary share offer that privatized the fuel distributor.

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In April, the company closed an US$8.6bn agreement for the sale of a 90% stake in the gas transport unit to French energy company Engie and Canada's Caisse de Dépôt et Placement du Québec. Petrobras plans on selling its remaining 10% participation later on.

PASADENA REFINERY

Chevron paid US$467mn for the refinery in Texas (USA). The transaction was concluded in May.

TARTARUGA VERDE AND ESPADARTE

The US$1.29bn sale of module III of Espardate field and 50% of Tartaruga Verde field, both offshore Campos basin, marked the entrance of Malaysian company Petronas to Brazil’s E&P market.

ONSHORE FIELDS 

Petrobras closed a US$384mn agreement with local company PetroRecôncavo in April for 34 onshore production fields in Rio Grande do Norte state.

MAROMBA

The field in Campos basin was acquired in March by Norway’s BW Offshore and will be the first field the company operates in Brazil. BW Offshore has so far worked in the country by chartering vessels or in partnership with other operators. The firm paid US$90mn and plans to start production by 2022.