Brazil’s state-owned oil and gas company Petróleo Brasileiro (Petrobras) has completed the sale of its interest in the Albacora Leste oil field to Petro Rio Jaguar Petróleo (PetroRio), a subsidiary of Petro Rio, for up to $2.2bn.

The completion of the transaction follows the signing of a Sales and Purchase Agreement (SPA) regarding the Albacora Leste field with PetroRio in April last year.

With the closing of the transaction, Petrobras received a cash payment of $1.64bn. It follows an earlier payment of $292.7m, received after signing the sale contract.

In addition, Petrobras is eligible to receive up to $250m in contingent payments, based on future Brent crude oil prices.

Albacora Leste is a producing oil field located in the northern area of the Campos Basin, at a water depth of 3,533ft. The site is situated at around 120km from Cabo de São Tomé.

It started operations in 2006, and produced an aggregate of 29,000bbl/day of oil and 591,500m3/d of gas last year, according to Petrobras.

With the transaction now closed, PetroRio becomes the operator of the Albacora Leste field, with a 90% stake. The remaining 10% is with Repsol Sinopec Brasil.

The divestment of the Albacora Leste field is aligned with Petrobras’ portfolio management strategy which seeks to improve allocation of capital to maximise value.

The company will continue to focus on assets that promise a great competitive advantage over the years.

PetroRio focuses on the acquisition, redevelopment, and operation of mature fields predominantly in the Campos Basin.