Petrobras, the state-controlled Brazilian oil company, announced on Monday that it has decided to cancel several asset-sale processes following the adoption of new strategic goals. The company, also known as Petroleo Brasileiro, has chosen to cancel the sales of its Urucu and Bahia Terra onshore production complexes, as well as its Campo de Manati offshore field and Argentine subsidiary Petrobras Operaciones.
These assets align with Petrobras' new strategic objectives, which aim to maximize the value of its exploration and production (E&P) portfolio by prioritizing profitable assets. Other assets within the E&P portfolio will be periodically evaluated based on these goals, and the company will inform the market if it decides to sell them in the future.
Previously, Petrobras had been in the process of selling onshore fields and offshore fields in shallow waters, with a focus on boosting production from its deep and ultra-deep water fields off the coast of Rio de Janeiro and Sao Paulo states. However, Brazilian President Luiz Inacio Lula da Silva, who took office earlier this year, made the decision to change this strategy.
In terms of its gas and electric portfolio, Petrobras has opted to continue the sale process for several stakes. This includes its 20% stake in Brasympe, which owns the Termocabo power plant, its 20% stake in the Suape II power plant, and its 18.8% stake in the Araucaria power plant.
This shift in asset sales reflects Petrobras' commitment to aligning its strategic goals with profitable assets. The company will prioritize maximizing the value of its E&P portfolio going forward.