Brazilian state-run company Petrobras has signed a deal with Carmo Energy to sell its stakes in 11 producing fields located in Polo Carmópolis area for $1.1bn.

Located in different municipalities in the state of Sergipe, the onshore production concessions are jointly called Carmópolis Cluster.

The concessions include integrated facilities with an access to oil and natural gas processing, flow, storage and transportation infrastructure.

Under the terms of the agreement, Carmo Energy will pay $275m as down payment and a further $550m at the closing of the transaction.

The company will have to pay the remaining $275m to Petrobras, one year upon the closing the deal.

Petrobras stated: “This operation is aligned with the portfolio management strategy and the improved allocation of the company’s capital, aiming to maximize value and greater return to society.

“Petrobras is increasingly concentrating its resources on deep and ultra-deep water assets, where it has shown a great competitive edge over the years, producing better quality oil and with lower greenhouse gas emissions.”

The Carmópolis Cluster recorded an average production 7,600 barrels of oil per day and 43,000 m3/day of gas from January to November 2021.

The acquisition is expected to enable Carmo Energy, an affiliate of the Cobra group, to enter the sector of production, processing, flow, storage and transportation of oil and natural gas in Brazil.

In November this year, Petrobras selected a consortium led by PetroRio for the sale of Albacora and Albacora Leste offshore oil fields, located in deep waters of the Campos basin, offshore Brazil.

The two concessions attracted bids worth more than $4bn in September.