Brazilian state owned energy company, Petrobras, is rumoured to be selling its stake in the giant Libra field, in the Santos basin, offshore Rio de Janeiro. A Field with estimated reserves of up to 12 billion barrels of oil.
However recent strikes that spread through the company’s workforce were largely put down to the ongoing fire sale by the firm, that is looking to offload at least US$19 billion of assets, as it continues to struggle with a vast debt mountain.
Petrobras is looking to offload assets due to the company’s vast debts of US$130 million- the biggest debt of any oil and gas company in the world. Over the next year alone, the state owed firm has pledged to dispose of at least US$19 billion of assets, in a desperate bid to bring its debts to a manageable level.
The smaller less lucrative assets Petrobras has so far put on the table have been deemed as unattractive by the industry, resulting in no buyers, and forcing the company’s hand.
The Libra field is seen by some as Petrobras’ crown jewels, and an asset that will service the company through in the coming decades.
The giant offshore Libra field, with estimated recoverable reserves of between 8 to 12 billion barrels of oil equivalent, was first discovered back in 2010. The field is still under development. First oil is expected at the beginning of 2017.
Current partners in the field include Royal Dutch Shell and French based Total, each holding a 20% stake. China’s CNOOC and the China National Petroleum Corp each hold a 10% stake. Petrobras holds the remaining 40%.
The sale is likely to bring much welcome bids, for the stake of what is one of the biggest oil fields to be discovered in recent times.Last updated on 08:49AM - 10/12/15