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Petrobras starts binding phase for 2 fields in Brazil's Sergipe-Alagoas Basin

Petróleo Brasileiro SA has begun the binding phase of its previously announced plan to divest its 50% interest in the onshore Dó-Ré-Mi and Rabo Branco fields in Brazil's Sergipe-Alagoas Basin.

The Rabo Branco field produced an average of 161 barrels per day in 2018. The Dó-Ré-Mi field has two gas discovery wells with no commercial production yet. Offers for the fields must be made separately, according to a securities filing.

Galp Energia SGPS SA subsidiary Petrogal Brasil SA owns a 50% stake and operatorship of the fields, while Petrobras holds the remaining 50%.

Petrobras is selling assets in order to reduce debt. The divestment program has brought in $15.3 billion as of Oct. 15, 2019, and the Brazilian oil major plans to extend the program to 2024.