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Brazil’s Petrobras seeks to divest Nigerian oil assets

Brazil's national oil company Petróleo Brasileiro (Petrobras) is seeking to sell Petrobras Oil & Gas (POGBV), as part of its broader divestment strategy.

POGBV is a joint venture formed by Petrobras with 50% stake, BTG Pactual E&P with 40% stake and Helios Investment Partners holding remaining 10% interest.

Petrobras, which leads the sale process, said that the joint venture is being fully sold.

POGBV owns interests in two deepwater offshore blocks in Nigeria. The blocks contain the producing fields Akpo and Agbami, the ongoing oil development Egina as well as the Preowei discovery.

The Brazil’s state-run oil company said that POGBV has approximately 204 million bbl of net reserves with current production capacity of 48 thousand bbl/day. Production is expected to reach around 75 thousand bbl/day by 2019.

Separately, Petrobras said that a federal court has suspended an injunction related to the stakes sale in the Iara and Lapa oil exploration areas.

The injunction suspended the sale of Petrobras’ 22.5% stake in the Iara field and 35% interest in the Lapa field to Total.

Meanwhile, Petrobras said it has acquired, together with other firms, three offshore blocks including Peroba, Alto de Cabo Frio Central and Entorno de Sapinhoá, in the 2nd and 3rd bidding rounds in the production sharing system in Brazil.

The bidding rounds were launched by the National Petroleum Agency (ANP).

The Entorno de Sapinhoá will be owned by Petrobras with 45% stake, Shell 30% interest and Repsol Sinopec 25% stake while Alto de Cabo Frio Central block will be equally owned by Petrobras and BP

Additionally, the Peroba block with be developed and operated by Petrobras with 40% stake, BP 40% interest and CNODC 20% interest.

Image: Petrobras headquarters in Brazil. Photo: courtesy of galio, modified by Fulviusbsas/Wikipedia.