Malaysia’s Petronas is actively pursuing buyers for its 50% stake in the Tartaruga Verde oil field in Brazil, with potential proceeds reaching up to $1 billion. According to a report from Bloomberg, which cites unnamed sources, the company aims to capitalize on its investment made in 2019 when it acquired the stake from Petrobras, the Brazilian state-controlled oil giant that retains the other 50% of the field.
The Tartaruga Verde field is situated in the Campos Basin, one of Brazil’s most prolific oil-producing regions. Petronas’ decision to divest comes as the company also weighs options for its Canadian business, which could be valued between $6 billion and $7 billion. Reports indicate that Petronas is working with a financial adviser to consider strategic alternatives, including the possibility of selling a minority stake, depending on buyer interest and valuation.
Petrobras Focuses on Existing Fields
Earlier in the year, Petrobras announced its intention to prioritize the development of existing oil fields rather than engaging in new explorations. The company has expressed concerns about declining recovery rates from aging fields, particularly in the Campos Basin, where rates have dropped to a mere 17%. This decline has prompted both Petrobras and Petronas to reassess their stakes in the Tartaruga Verde field.
Petrobras has made recent strides in increasing its oil and gas production. In the second quarter, the company reported an output of 2.7 million barrels of oil equivalent, marking a 2.4% increase as production ramped up at five platforms and twelve new wells were initiated, eight of which are located in the Campos Basin. This recovery follows a significant 25% drop in Brazilian output earlier in the year due to maintenance on various platforms.
With platforms returning to production and some projects starting earlier than anticipated, Brazil’s oil output is expected to recover later this year, potentially exceeding initial forecasts. The concerted efforts by both Petrobras and Petronas reflect the challenges and opportunities present in Brazil’s oil sector as they navigate production declines and seek to enhance overall operational efficiency.
As the situation evolves, stakeholders will closely monitor how Petronas’ divestment strategy unfolds and the implications for the broader oil market in Brazil.
