A prominent player in the oil and gas industry has executed a series of agreements that will see it offload assets worth billions of dollars.
Petrobras has a presence across all segments of the oil and gas industry, including exploration, production, refining, marketing and transportation. In the first half of 2019, the company announced it had executed three transactions that would result the sale of US$10.3 billion worth of assets.
For the sum of US$8.6 billion, Petrobras sold 90 per cent of its stake in the Transportadora Associada de Gás S.A. (TAG). TAG is a major name in Brazil’s natural gas transportation sector, managing a pipeline network of approximately 4,500 km and a transport capacity of 74 million m3/d, equating to about 47 per cent of the country’s entire natural gas infrastructure.
Petrobras sold the company equity to a group consisting of ENGIE Brasil and the Canadian institutional investor Caisse de Dépôt et Placement du Québec (CDPQ) but will continue to use TAG pipelines through contracts already in force between the companies. ENGIE’s ownership of TAG now amounts to 49.3 per cent, with the company becoming industrial partner TAG as well as the asset manager.
ENGIE CEO Isabelle Kocher said the acquisition was a key step in the company’s future goals.
“Our acquisition of TAG is a significant milestone for ENGIE in Brazil, a key market for the Group where we have been present for 23 years. It is fully aligned with ENGIE’s strategy to become the leader of the zero-carbon transition, supporting Brazil in the decarbonisation of its energy mix,” she says.
Tartaruga Verde and Module III
For US$1.3 million, Petrobras sold 50 per cent of its interest in the Tartaruga Verde field and Module III of Espadarte field to PETRONAS. Malaysia’s state-owned and fully integrated multinational, PETRONAS operates in more than 80 countries and has a presence in the upstream and downstream gas and new energy markets.
Tartaruga Verde began operations in June 2018 and currently produces approximately 103,000 bbl/d of oil and 1.2 million m³/d of gas, while the Module III is set to be developed in an integrated way with Tartaruga Verde field, with first oil expected in 2021. Petrobras still holds a 50 per cent working interest and operatorship of the fields.
Rio Grande do Norte
In a transaction totalling US$384.2 million, Petrobras sold its full stake in 34 onshore production fields in Rio Grande do Norte, a state in the northeast section of Brazil. Petrorecôncavo S.A purchased the assets, which included Asa Branca, Baixa do Algodão, Boa Esperança, Baixa do Juazeiro, Brejinho, Cachoeirinha, Cardeal and a host more.
All the assets were 100 per cent owned by Petrobras, except for Cardeal and Colibri fields, where Petrobras held a 50 per cent stake, with Partex as operator with a 50 per cent stake, and Sabiá da Mata and Sabiá Bico-de-Osso fields where Petrobras holds a 70 per cent stake, with Sonangol as operator with a 30 per cent stake.
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