Brazilian state-run integrated energy company, Petrobras has announced plans to divest its 50% stake in an African exploration joint venture with BTG Pactual E&P and Helios Investment Partners. Per Petrobras, the JV has stakes in Nigeria's Akpo and Agbami fields, where it is engaged in exploration and production. The divestment program also includes the Egina field and Preowei field's exploration and production rights.
Production from the Egina field is expected to start in late 2018 while the Preowei field is still in the assessment phase. In the Akpo and Egina fields, the operating stakes are held by French integrated oil major Total S.A. TOT. On the other hand, the Agbami field is operated by San Ramon, CA-based energy company, Chevron Corporation CVX .
The JV has liquid reserves of around 204 million barrels and it produces approximately 48,000 barrels per day (bpd). Per Petrobras, by 2019, production from the assets is estimated to increase to 75,000 bpd. Apart from Nigeria, Petrobras operates in three other countries in Africa, namely Tanzania, Gabon and Angola.
The sale of the stakes is in line with the company's strategy to reduce its debt burden. It carries a net debt of almost $89.2 billion with net debt-to-capitalization ratio of approximately 53%. The divestment will keep the company's strategy of offloading $21 billion worth of assets through 2018 on track.
The sale process, part of the strategic alliance signed earlier this year with Total, can now move forward.
