Petrobras to auction $5b of Nigeria oil assets
Petrobras is to auction off its stakes in Nigerian oil fields to raise cash for domestic projects, a deal that may fetch up to $5 billion, sources close to the deal said
According to news reports by Reuters, Petrobras will sell its 8 percent stake in the Nigerian offshore Agbami blocks, which are operated by U.S. energy major Chevron and its 20 percent share of the offshore Akpo project, operated by France’s Total.
Petrobras is divesting assets and redirecting investment towards higher-return activities such as exploration and production to finance a five-year, $237 billion capital spending plan, the world’s largest corporate investment program.
Petrobras hopes to more than double current oil and gas production by the start of the next decade to about 5.2 million barrels of oil equivalent a day and also help Brazil become self-sufficient in refined products as well.
By divesting assets such as the Nigerian blocks, Petrobras can focus more on exploring for oil in a vast deep sea region off the coast of Brazil known as the subsalt, thought to contain dozens of billions of barrels of high-quality oil.