Norway’s oil and gas exploration and production (E&P) company BW Energy has confirmed that it is in talks with Brazil’s Petrobras to acquire a stake in the Golfinho field offshore Brazil.

Last year, Reuters reported that Brazil’s state-run oil company was looking for bids for the Golfinho oilfield cluster and received offers from BW Energy and Brazil’s DBO Energy.

The sale is part of the firm’s efforts to reduce debt and shift its focus to a prolific, deepwater formation.

Commenting on the discussions with Petrobras, BW Energy said that the acquisition forms part of the firm’s efforts to seek opportunities to acquire assets in line with its strategy.

BW Energy said in a statement: “The group can neither confirm nor deny that a transaction will take place at this time.”

Located in the Espírito Santo basin 60km off the shore of Brazil, the Golfinho light oil field comprises two reservoirs of the Campanian and Maastrichtian ages.

The field started production in 2006 and reported a daily output of approximately 14,900 barrels of oil and 750,000 cubic metres of gas as of 2020, reported Reuters, citing bidding documents released by Petrobras.

BW Energy holds a diversified portfolio of production and development assets offshore Brazil and West Africa.

The firm currently owns majority stakes in three hydrocarbon licences in Maromba, Brazil; Dussafu, Gabon; and Kudu, Namibia.

Last month, Petrobras divested oil and gas assets worth more than $1bn in Brazil

Together with Sonangol Hidrocarbonetos Brasil (Sonangol ), the firm sold a 100% stake in onshore block POT-T-794, in Brazil, to Aguila Energia e Participações.

Petrobras also offloaded its stakes in 14 onshore E&P fields, called the Recôncavo Cluster, located in Bahia, to 3R Candeias.