Brazil’s state oil firm Petrobras has withdrawn its appeal of an injunction on the planned sale of offshore oil fields to Australian firm Karoon Gas, according to Reuters.
The decision effectively amounts to a cancellation of the deal. It follows Karoon’s partner Woodside Petroleum’s decision to pull out of the transaction.
A Brazilian federal court placed an injunction on the trade last year when a Petrobras employees’ union sued to block the negotiations involving the Bauna field in the Santos Basin and a half stake in the Tartaruga Verde field in the Campos Basin.
Petrobras, which has the most debt of any oil company in the world, has been attempting to divest itself of some assets in a bid to reduce its red ink.