Brazil’s state-owned oil company Petrobras has decided to terminate the sale process of its four concessions, located in deep waters in the Sergipe-Alagoas basin.

The firm was considering the partial sale of four concessions including BM- SEAL-4, 4-A, 10, and 11. The current competitive process had reached the bidding phase.

The concessions are represented by the Agulhinha, Budião, Budião Noroeste, Budião Sudeste, Cavala, and Palombeta fields.

Petrobras said that the concessions now better align with its strategy.

Reaffirming its focus on deep and ultra-deep waters assets, the firm noted that the sale process termination marks the beginning of the new frontier development in deep waters in the Sergipe-Alagoas basin.

In a press statement, the firm said: “Petrobras constantly evaluates its portfolio and, considering the alignment of the concessions to the company’s strategy and the improvement of Petrobras’ economic-financial indicators, the concessions were kept fully in the portfolio, marking the beginning of the development of a new frontier in deep waters in the Sergipe-Alagoas basin.”

Petrobras recently announced its plan to invest $5.5bn in oil and gas extraction activities in the next five years, and unlock new discoveries in Brazil.

It also plans to operate 15 floating production storage and offloading (FPSOs) units in the next five years. Of these, ten FPSOs are planned to be installed in the pre-salt area, and five in the post-salt areas.

In February 2022, Petrobras started the non-binding phase for the sale of a 20% stake in MP Gulf of Mexico (MPGoM), which has interests in 14 offshore fields in the Gulf of Mexico.

Through its subsidiary Petrobras America, Petrobas holds the minority stake in MPGoM. The remaining 80% stake is held by Murphy Exploration & Production.

The MPGoM joint venture was created in late 2018 through the combination of the two firm’s Gulf of Mexico producing oil gas assets.