The transaction is in line with the portfolio optimization and the improvement of the company’s capital allocation, aiming at generating value for our shareholders

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Image: Petrobras refinery in Cochabamba, Bolivia. Photo: Courtesy of Marcello Casal Jr/ABr/Wikipedia.

Petróleo Brasileiro (Petrobras), following up on the release disclosed on 11/01/2019, announces that it has started the binding phase referring to the sale of its interest in fifteen onshore exploratory blocks, located in the Sergipe-Alagoas Basin.

Qualified parties for this phase will receive a process letter with instructions on the divestment process, including guidelines for due diligence and submission of binding proposals.

This disclosure complies with Petrobras’ divestment guidelines and is aligned with the provisions of the special procedure for assignment of rights on exploration, development and production of oil, natural gas and other fluid hydrocarbons, provided for in Decree 9,355/2018. This transaction is in line with the portfolio optimization and the improvement of the company’s capital allocation, aiming at generating value for our shareholders.

Of the 15 exploratory blocks, eight are exclusive to Petrobras and include the SEAL-T-61_R11, SEAL-T-112_R12, SEAL-T-165_R12, SEAL-T-177_R12, SEAL-T-359_R12, SEAL-T-372_R12, SEAL-T-383_R12 and SEAL-T-384_R12 concessions. The Concession SEAL-T-61_R11, from the 11th ANP Bidding Round, was signed in 2013. The concessions SEAL-T-112, SEAL-T-165, SEAL-T-177, SEAL-T-359, SEAL-T-372, SEAL-T-383 and SEAL-T-384 of the 12th ANP Bidding Round were signed in 2014.

In the remaining 7 blocks, Petrobras and Nova Petróleo are partners in the SEAL-T-279_R12, SEAL-T-280_R12, SEAL-T-291_R12, SEAL-T-292_R12, SEAL-T-345, SEAL-T-346_R12 and SEAL-T-360_R12 concessions, in which each holds a 50% stake, having been acquired in the 12th ANP Bidding Round in 2014. In this case, after the presentation of bids, Nova Petróleo may exercise the preemptive right of acquisition of Petrobras’ interests.

Source: Company Press Release