Petrobras' Board Approves $2.1 Bln Worth Sale Of Assets

(RTTNews) - Brazil's national oil company, Petróleo Brasileiro SA (PBR), or better known as Petrobras, said Friday its board approved the sale of assets totaling $2.1 billion, representing an important step towards speeding up its Divestment Program.

The Rio de Janeiro-based company said it would sell its 35 percent stake in block BC-10, known as Parque das Conchas, to the Chinese conglomerate, Sinochem Group for $1.54 billion. Parque das Conchas' partners include Shell holding a 50 percent stake, and India's ONGC which holds a 15 percent stake. Petrobras said that both the stakeholders have the right to preempt the deal and buy the 35 percent stake within 30 days.

Additionally, the oil company also said that it would sell its stake in Petroquimica Innova, a petrochemicals firm, to Videolar SA for $372 million, along with the assumption of $9.6 million debt. Innova produces ethylbenzene, styrene and polystyrene, used in the manufacture of home appliances, disposables, elastomer, packages, paints and fiberglass.

In the US Gulf of Mexico, Petrobras is to sell its 33 percent stake in the Coulomb field located in the Mississippi Canyon Block 613(MC 613), 100 percent stake in Cottonwood field located in the Garden Banks Block 244 (GB 244) and 60 percent stake in EW910 asset for $185 million. The Coulomb field's remaining 67 percent is held by Shell, while the 40 percent remaining in EW910 asset is held by the operator W&T Offshore.

Petrobras, earlier said that it planned to ramp up sales in the second half of the year, as a part of $9.9 billion divestment plan earlier this year. Earlier, the company sold half of its African assets to investment bank, BTG Pactual, pursuant to a joint venture deal. Additionally, Petrobras also sold stakes in several oil fields owned by it abroad, comprising of holdings in several Gulf of Mexico exploration blocks.

The oil firm also announced a sales agreement for 20 percent of the voting capital of Companhia Energética Potiguar or CEP, with its controlling shareholder, Global Participações em Energia S.A, for about $16 million, to be settled with regard to the agreement.

Petrobras concluded that these transactions represent an important step within its Divestment Program, Prodesin, outlined in the 2013-2017 Business and Management Plan.