Brazil oil and gas giant Petrobras has begun the non-binding phase with regards to the sale of its Polo Reconcavo onshore oil and gas cluster in the northeastern state of Bahia, Reuters reported.
During this phase, Petrobras is expecting parties to make non-binding offers for the Polo Reconcavo oil and gas cluster. Petrobras’ Polo Reconcavo onshore oil and gas cluster produced 2,800 barrels of oil per day and 588,000 cubic meters of gas in 2018.
Petrobras has also started the sale of its four refineries, as it plans to end the company’s monopoly of the sector. The company is looking to reduce its share in the country’s refining capacity to 50 percent under terms of an antitrust agreement.
The Brazil oil and gas company also plans to divest assets worth $26.9 billion by 2023 which will mean the company’s exit or reduced participation in segments such as biofuels, fertilizers, fuels distribution, logistics, and natural gas distribution. The divestment is in line with Petrobras’ current goals, which aims to sell non-essential assets to focus on the exploration and production activities of higher profitability in deep and ultra-deep waters.
The company has set forward the conditions that the potential buyer for its refineries must be an oil company active in crude production, refining, and sales with at least $3 billion in 2018 revenues. The buyers will have time till August 16th to confirm their interest with September 27th being the deadline to sign a confidentiality agreement.
The Brazilian government is also opening up the country’s natural gas industry in an effort to make fuel cheaper for industrial and residential users, with Petrobras planning to be an active participant.