Petrobras reaches $1.3bn sale of African project stake

Brazilian state-owned oil company, Petróleo Brasileiro SA, is close to agreeing the sale of its stake in Petrobras Oil & Gas BV, an African venture, for around $1.3 billion, according to a report by Reuters.

Petrobras currently holds 50 percent of Petrobras Oil & Gas BV or Petrobras Africa while Grupo BTG Pactual SA holds a 40 percent stake in the venture and Helios Investment Partners owns the remaining 10 percent.

All three shareholders would sell their stakes, valuing the venture at around $2.6 billion, Valor said, citing an unnamed source.

Heavily indebted Petrobras launched the sale of Petrobras Oil & Gas BV, or Petrobras Africa, in which it holds 50 percent, as part plans to offload $21bn in assets through 2018.

Reuters reported on June 18 a consortium led by international oil trading house Vitol is in talks to buy stakes in the Nigerian offshore fields held by Petrobras and its partners valued at $2.5billion.

The deal would offer the consortium a stake in some of Nigeria’s largest and lowest-cost fields. Vitol is expected to shoulder the largest part of the investment, spending an estimated $1bn, according to one source.

It will be recalled that in November 2017, Petrobras, launched the sale of 100 percent of Petrobras Africa, as part of the heavily-indebted company’s plan to offload $21 billion in assets through 2018 as it also faces a massive corruption scandal. Petrobras holds half the shares in the company while 40 percent are held by a subsidiary of Grupo BTG Pactual SA and 10 percent by Helios Investment Partners.

The venture has stakes in two offshore blocks that contain two producing fields, the major Agbami field in OML 127, operated by a local Chevron affiliate and the Akpo field in OML 130 operated by Total SA.

Sources say Glencore was looking to back Nigerian producer Seplat in bidding for the assets while Vitol is examining backing several bidders in the process. Swiss-based commodities trader Mercuria was involved in the initial bidding round but was unlikely to continue in the process. Oil major BP’s trading division had also considered participating in a possible consortium, but dropped out.

The Akpo field produces nearly 130,000 barrels per day (bpd) of condensate and Total is also due to start production at the Egina development in OML 130 later this year. The Agbami oilfield is the main prize, however, producing about 240,000 bpd of light, sweet crude. Petrobras holds a 12.5 percent stake in the field, Statoil has 20.2 percent and Chevron holds a 67.3 percent stake.

The operator is a Chevron affiliate called Star Deep Water Petroleum Ltd. Famfa Oil is one of the concessionaires of Star Deep Water Petroleum and was also looking to increase its stake in the oilfield.

Petrobras Africa has stakes in two offshore blocks, known as OMLs. The Agbami field in OML 127 is operated by an affiliate of U.S. firm Chevron (CVX.N) and the Akpo field in OML 130 is operated by Total SA (TOTF.PA).

Agbami oilfield produces about 240,000 barrels per day (bpd) of light, sweet crude. Petrobras Africa holds a 12.5 per cent stake in the field, Statoil has 20.2 per cent and Chevron holds a 67.3 per cent stake.

The Akpo field produces nearly 130,000 bpd of condensate and Total is also due to start production at the Egina development in OML 130 later this year.