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Petrobras to spend $6 bn through 2024 to decommission assets

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The assets include 18 offshore platforms, underwater gas pipelines and offshore wells

Brazilian state-owned oil company Petrobras is planning to spend around $6 billion till 2024 to decommission 18 offshore platforms, underwater gas pipelines and offshore wells, it said in a securities exchange filing.

Petrobras said it predicts proceeds of $1billion from asset sale in 2020, after receiving $14.4 billion in 2019.

It is reported that French oil giant Total has reached an agreement with Petrobras to transfer its stakes in five exploration blocks in the Foz do Amazonas Basin, offshore Brazil.

Last month, Total notified its partners about its resignation from its role of operator of the blocks, which are located at a distance of 120 km off Brazil. It also informed the National Agency of Petroleum, Natural Gas and Biofuels (ANP) of its decision, opening up a six-month period during which a replacement would be found.

During the same period, Petrobras initiated the sale process for 26 onshore and shallow water oil fields and a refinery in the northeastern part of the country. The oil behemoth is still in the nascent stages of the oilfields and refinery sale.

It was reported that the oilfields produce approximately 23,000 barrels per day this year and 124,000 cubic meters per day of gas. That said, the Clara Camarao refinery has a capacity of 39,600 barrels per day.

In April, Petrobras set a record by exporting 1 million barrel of oil per day as domestic demand plunged. During the first four months of 2020, around 60 percent of Petrobras’ exports went to China.

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