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Petrobras and Chevron to sell 100% stake in the Papa-Terra oilfield

Petrobras Chevron
Petrobras owns 62.5% of the oilfield and Chevron holds the remain 37.5%

Brazil’s state-run oil company Petrobras and American multinational energy company Chevron are preparing to sell 100 percent ownership in the Papa-Terra deep-water oilfield in Brazil’s Campos Basin.

Petrobras owns 62.5 percent of the project and the remaining 27.5 percent is owned by Chevron.

According to Petrobras, Papa-Terra produced 17,300 barrels of oil equivalent per day in 2019. The asset is widely seen as having complex geology, though Petrobras said it will be offered on attractive financial terms.

While Petrobras confirmed the same in a securities filing, Chevron, on the other hand, said in a statement, “This initiative supports the company’s ongoing efforts to manage its global portfolio.”

“Chevron remains committed to growing its presence in Brazil through the pre-salt blocks acquired in the 2018 and 2019 bid rounds. Brazil pre-salt, world-class resources play an important role in Chevron’s global upstream strategy.”

Last year, Chevron sold its majority ownership stake in Brazil’s Frade field. Currently, Papa Terra is the only mature asset the company holds in Brazil.

Similarly, Petrobras is also in the process of divesting a majority of its non-core assets in order to reduce debt.

Reportedly, Petrobras is also selling the Mangue Seco 1 and Mangue Seco 2 wind farms in the northern state of Rio Grande do Norte. Petrobras is planning to sell a 49 percent and 51 percent stake in the two wind farms respectively. The two wind farms are part of a complex of four plants, with a combined capacity of 52-megawatt.

Recently, Petrobras also exited the African continent by selling its stakes in Petrobras Oil and Gas BV (POGBV), through which it held stakes in Nigeria’s Egina and Agbami fields.

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