MercoPress. South Atlantic News Agency

Petrobras continues divestment program: sells blocks in US Gulf of Mexico

The Brazilian giant needs funds to concentrate in developing reserves along its coast

Brazil’s Petrobras is selling its 20% stake in the Gila prospect in the US Gulf of Mexico as part of its ongoing divestment program. The state-owned company said it had signed a sale and purchase agreement for the sale of its equity in exploration blocks KC 49, 50, 92, 93, 94 and 138, which make up the BP-operated asset.

Petrobras expects to receive 110 million dollars for the sale, plus additional equity in an exploration block located next to its existing deep-water Gulf discovery, Tiber.

The sale is part of the company’s plan to divest almost 10 billion dollars in assets to raise cash for exploration, as outlined in its 2013 – 2017 business and management plan.

The transaction remains subject to third party preferential rights and approval by the US Bureau of Ocean Energy Management.

BP said in December last year that Gila would be the first of a group of Paleogene prospects it planned to drill in the Gulf of Mexico during the first half of this year.

Petrobras did not specify to whom it sold the blocks.

Shell which is Europe’s biggest oil company at the beginning of last month said it was interested in acquiring assets in the Gulf of Mexico, including Petrobras blocks.

“It is one of the most strategic deep-water areas for Shell and the company will continue to negotiate with partners in the region, including Petrobras, if there are opportunities,” Andre Araujo, head of Shell’s Brazilian unit, said at a press conference in Rio de Janeiro aside Chief Executive Officer Peter Voser.