Malaysian oil and gas major Petronas has entered into a sale and purchase agreement with Brazilian state run energy group Petrobras for a 50 percent equity in the Tartaruga Verde field and its facilities and Module III of the Espadarte field, both located offshore Brazil.
Petronas said the acquisition marks an important milestone for the company as it diversifies and expands its oil business portfolio in South America.
The deal, valued at $1.29bn, is part of Petrobras’ divestment program, which aims at reducing debt.
“Continuous portfolio management contributes to improving the allocation of capital, thereby increasing the generation of value for our shareholders, in addition to enabling the reduction of indebtedness and cost of the company’s capital,” said Roberto Castello Branco, CEO of Petrobras.
Petrobras has already divested $11.3bn worth of asset so far this year.
The Tartaruga Verde field began operations in June last year and currently produces about 103,000 barrels per day of oil and 1.2m cubic meters per day of gas.