Argus Media Limited

09/30/2021 | News release | Distributed by Public on 09/30/2021 15:21

Petrobras receives $4bn bid for Campos basin acreage

Brazil's state-controlled Petrobras has received bids of over $4bn for its interest in the Albacora cluster, one of the major upstream assets in the company's $25-$35bn divestment portfolio.

The binding offers came from two groups, one led by Brazilian independent PetroRio in partnership with Spain's Cobra-the acquisition target of French conglomerate Vinci-and a second comprised of Brazilian independents Enauta and Starboard Asset-backed 3R in partnership with US investment fund EIG. Petrobras' review of the bids is ongoing and will be followed by another round of negotiations, the company said today in a securities filing.

Petrobras' wholly owned Albacora produced around 38,000 b/d of 27º API in August, according to data from oil regulator ANP. Albacora Leste produced around 30,000 b/d of 19º API, 10pc of that belonging to partner Sino-Spanish joint venture Repsol-Sinopec.

Last year, Petrobras announced the discovery of a 214m reservoir of light oil at a delineation well at Albacora, part of the development plan for the Forno area in the Campos basin pre-salt.

Company executives have said completion of the Albacora sale is only likely to be concluded in 2022, as is the divestment of a 50pc interest in the company's wholly owned Marlim cluster-the other major deepwater asset in Petrobras' divestment portfolio.

Petrobras' divestment target through 2025 is aimed at reducing its heavy debt load and freeing up more spending on core assets in the Santos basin pre-salt.

With strong cash positions and a wide selection of upstream acquisition targets, Brazilian indies such as Enauta, PetroRio, and 3R are looking to accelerate non-organic growth, as bigger firms shed producing shallow and deepwater assets and tighten focus on pre-salt production.