Petrobras takes BP stakes in Brazil's offshore
Brazilian energy company Petrobras said April 6 that it signed an agreement to take over six blocks in the ultra-deep waters off the country’s northern coast from a regional division of BP.
The company, known formally as Petroleo Brasileiro, reached an agreement with BP Energy do Brasil to take over six blocks offshore in the deep waters off the coast of the northern state of Amapa, which is considered frontier acreage.
“This transaction is in line with the 2021-2025 strategic plan, which foresees new exploratory fronts outside the southeastern basins, and is part of the company's portfolio management process, prioritising investments in world-class assets in deep and ultra-deep waters, aiming to maximise value for our shareholders,” Petrobras announced.
The US Energy Information Administration estimates that while Brazil is one of the largest oil producers in the world, its 13 trillion ft3 of natural gas reserves puts it third in South America behind Venezuela and Peru.
No terms of the agreement were disclosed. The announcement came on the same day that BP announced it was well on its way to meeting its $35bn net debt target for the first quarter of 2021. BP CEO Bernard Looney set debt reduction as a cornerstone of the company's strategy last year.