Petrobras sells stake in Tanzania Block to Statoil

Brazilian state-run energy giant, Petrobras, said on Friday it agreed to sell a stake in an oil and natural gas exploration block off the coast of Tanzania to Norway’s Statoil (STO).

Petrobras will continue to operate the block with a 38 per cent stake, while Anglo-Dutch major Royal Dutch Shell (RDSA.LN) will retain a 50 per cent share and Statoil 12 per cent. The deal is subject to approval by Tanzanian regulators. 

No financial details were provided. The deal is part of $9.9 billion in divestments planned by Petrobras as the company focuses on developing offshore fields in Brazil.

Petrobras plans to invest $237 billion through 2017, with much of the cash used to produce oil from the ultra-deep water reservoirs discovered trapped beneath a thick layer of salt. 

The region, known as the pre-salt, is estimated to hold as much as 100 billion barrels of crude. Petrobras has made a series of similar deals, called farm-outs, and outright sales of other exploration concessions over the past 18 months, primarily in the company’s international holdings.

The company recently sold off stakes in six exploration blocks in the US Gulf of Mexico for $110 million.

Chief executive Maria das Gracas Foster said this week that the company was in talks with several groups to sell assets in Argentina, but no decision had yet been made by Petrobras’s board on the potential sale.
Source: The Citizen and Agencies
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