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September 14, 2022

Brazil’s Prio remains interested in purchase of Petrobras’ assets

The comment by Prio’ finance chief comes despite the collapse of a deal for the Albacora oilfeild.

Brazilian oil company Prio, formally known as PetroRio, is still interested in acquiring some oil and gas assets from Brazil’s state-owned Petrobras, the company’s finance chief told Reuters.

The comment by Milton Rangel comes despite Petrobras recently abandoning its plan to sell the Albacora Field in the Campos basin, offshore Brazil, to Prio.

Petrobras said it will move ahead with the Albacora revitalisation project which includes the development of production from the Forno reservoir, located in the Albacora pre-salt.

Rangel told the news agency that the talks between Prio and Petrobras were called off due to a disagreement over the valuation of the oilfield.

Rangel added: “This reinforces a point we are very committed to, which is financial discipline. If we have certain parameters to make acquisitions, we have to respect them.

“But there was no problem. If Petrobras continues with its divestment plan, we will continue to look at it.”

In the recent years, Petrobras divested several oil fields, refineries, pipelines, gas station chains, and other assets to reduce its debt and shift its focus towards deepwater exploration and production.

Earlier this year, PetroRio agreed to acquire the Albacora Leste in a deal worth $2.2bn from Petrobras. The transaction is due to receive regulatory approval from oil regulator ANP.

Rangel added: “We are moving full steam ahead to get this approval from the ANP as soon as possible.”

The Albacora revitalisation project will involve the contracting of a new FPSO-type platform to replace the two production units that are currently operating at the field.

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