Petrobras to Cancel Some Asset Sale Processes

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By Jeffrey T. Lewis

SAO PAULO--Petroleo Brasileiro said Monday that it has decided to cancel some of the asset-sale processes currently under way after adopting new strategic goals.

In its exploration and production portfolio, the state-controlled Brazilian oil company known as Petrobras said it canceled the sales of its Urucu and Bahia Terra onshore production complexes, along with its Campo de Manati offshore field and Argentine subsidiary Petrobras Operaciones.

Those assets meet the new strategic objectives of "maximizing the value of its E&P portfolio with a focus on profitable assets," Petrobras said in a statement. Other assets in that portfolio will be evaluated periodically based on the strategic goals and the company will inform markets if it eventually chooses to sell them.

Petrobras had been in the process of selling off onshore fields and offshore fields in shallow waters to focus on boosting production from its rich fields in deep and ultra-deep waters off the coast of Rio de Janeiro and Sao Paulo states. Brazilian President Luiz Inacio Lula da Silva, who took office at the start of this year, decided to change that strategy.

In its gas and electric portfolio, Petrobras decided to continue the sale process for its 20% stake in Brasympe, which owns the Termocabo power plant, for its 20% stake in the Suape II power plant and for its 18.8% stake in the Araucaria power plant.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

September 04, 2023 09:16 ET (13:16 GMT)

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