Brazil’s Petrobras sells oil block in Alagoas state for US$300 million

RIO DE JANEIRO, BRAZIL – Petrobras signed a contract to sell its entire participation in seven onshore and shallow water concessions located in the state of Alagoas. The block, named Polo Alagoas, was sold for US$300 million to Petromais Global Exploração e Produção S.A. (Petro+).

The deal is part of the company’s divestment strategy to reduce debt and focus on pre-salt deep water production, where Petrobras has shown a large competitive differential over the years.

Of the total value of the sale, US$60 million was paid at the time the contract was signed. The remaining US$240 million will be paid at the closing of the transaction.

The amounts do not consider adjustments due until the transaction’s closing, which is subject to compliance with certain conditions precedent, such as approval by the National Petroleum, Natural Gas, and Biofuels Agency (ANP).

The Alagoas Pole comprises seven production concessions, six of which are onshore (Anambé, Arapaçu, Cidade de São Miguel dos Campos, Furado, Pilar, and São Miguel dos Campos) and the Paru field concession, located in shallow waters, with a water depth of 24 meters.

This year, the pole’s average production was 1,900 barrels per day (bpd) of oil and condensate and 602,000 m³/day of gas, generating 900 bpd of NGL (natural gas liquids).

Besides the fields and their production facilities, also included in the transaction is the Natural Gas Processing Unit (UPGN) of Alagoas, whose processing capacity is 2 million m³/day and is responsible for processing 100% of the pole’s gas for the generation of NGLs.

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