Brazilian oil and gas company Petróleo Brasileiro (Petrobras) has divested its entire stakes in 11 onshore fields jointly called Carmópolis Custer, in the state of Sergipe to Carmo Energy for $1.1bn.

The Carmópolis Cluster comprises 11 onshore production concessions, which are located in different municipalities of Sergipe state.

It also includes access to the infrastructure for processing, flow, storage, and transportation of oil and natural gas.

As per the terms of the agreement, which was signed earlier this year, Carmo Energy has made initial down payment of $275m and a further $548m at the closing of the transaction.

Furthermore, Petrobras will receive $275m from Carmo Energy over in 12 months after the closing the deal.

In a press statement, Petrobras said: “This operation is aligned with the portfolio management strategy and the improvement of the company’s capital allocation, aiming to maximize value and greater return to society.”

Petrobras has 100% operatorship stake in the Carmópolis Cluster, which also includes the Atalaia Cluster which comprise Aracaju Waterway Terminal (Tecarmo) and the Bonsucesso-Atalaia Oil Pipeline, among others.

According to the Brazilian firm, the Carmópolis Cluster has reported an average production of 4.5 thousand barrels of oil per day and 22 thousand m3/day of gas in November 2022.

In a separate announcement, Petrobras has initiated non-binding phase for the sale of its wholly-owned subsidiary in Argentina, Petrobras Operaciones S.A. (POSA).

POSA owns a 33.6% stake in the producing Rio Neuquén unconventional gas field located in the provinces of Rio Neuquén and Rio Negro onshore Argentina.

Petrobras holds 100% stake in POSA through its subsidiaries Petrobras Internacional Braspetro (PIB) BV and Petrobras Valores Internacionais de España.