Brazil’s state oil firm Petrobras, wrestling with immense debt obligations, is offering as much as a quarter of its significant stake in the vast Libra oil prospect, according to Reuters.
Petrobras’ well-documented troubles include overreach on investments and government mandates that it must participate in projects in the subsalt polygon.
But the biggest problem has been the bribes-for-inflated-contracts scandal that has implicated company executives and politicians. That corruption cloud has dented the company’s coffers, tarnished its name and hampered its operating ability.
As it struggles to make interest payments on its debt, the biggest of any oil company in the world, Petrobras has been drastically cutting back budget and investment plans. It is also selling off assets and that includes this move as it is ready to give up a portion of its 40% stake in Libra, a sale that could fetch as much as $1.5bn.
There should be no shortage of takers among the industry’s major players as the Libra field in the Santos basin, 140 miles offshore Rio de Janeiro, is estimated to contain between 8bn and 12bn barrels of recoverable oil and gas equivalent.