Brazilian energy firm Petróleo Brasileiro (Petrobras) is planning to sell about $13.7bn in assets over the next two years to reduce its debt.
The company’s exploration and production assets in Brazil and overseas are expected to account for 30% of asset sales targeted in its 2015/2016 divestment plan.
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Gas and energy assets may account for 40% and the remaining 30% would come from downstream segment.
The divestment plan increases the targets from $5bn to $11bn allocated in the 2014-2018 Business & Management Plan that was unveiled in February 2014.
Petrobras said in a statement: "This plan is part of Petrobras’s financial planning aimed at reducing leverage, preserving cash and focusing on priority investments, mainly oil and gas production in Brazil in areas of high productivity and return."
The relevant governance authorities, including the executive board and the board of directors, will review and approve each asset sale transaction.
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By GlobalDataThe company is also required to secure approval from the Brazilian and international regulatory agencies, as applicable.
Petrobras, which is majority-owned by the Brazilian Government, operates in exploration and production, refining, marketing, transportation, petrochemicals, oil product distribution and several other sectors.
In November 2014, Brazilian federal police have arrested 18 people in connection with its corruption investigation into state-run oil company Petrobras.
The investigation concerns charges of money-laundering and organised crime against Petrobras’ former director Paulo Roberto Costa, who is accused of embezzlement and corruption.
Petrobras CEO Maria das Graças Foster and five other senior executives have recently stepped down after corruption scandal.
Image: Petrobras headquarters in Rio de Janeiro, Brazil. Photo: Courtesy of gali, modified by Fulviusbsas.
