State-owned oil company Petróleo Brasileiro SA, or Petrobras, began the binding phase to divest 15 onshore exploratory blocks located in Brazil's Sergipe-Alagoas Basin, according to a Dec. 17 securities filing.
Of the 15 blocks, the SEAL-T-61_R11, SEAL-T-112_R12, SEAL-T-165_R12, SEAL-T-177_R12, SEAL-T-359_R12, SEAL-T-372_R12, SEAL-T-383_R12 and SEAL-T-384_R12 concessions are exclusive to Petrobras.
The remaining seven blocks are owned by Petrobras and Brazil-based Nova Petróleo Recôncavo SA, each with a 50% stake. Nova Petróleo may exercise the preemptive right to acquire Petrobras' share.
The Brazilian state-owned oil company is selling assets to reduce debt. The divestment program brought in $15.3 billion year-to-date as of Oct. 15, with Petrobras aiming to sell $20 billion to $30 billion in assets in 2020-2024.