Business

Brazil’s DBO Energy and Norway’s BW Energy Ltd drop bids for Petroleo Brasileiro ADR Reptg 2 (NYSE: PBR) Golfinho Offshore Oilfields

Brazil’s DBO Energy and Norway’s BW Energy Ltd are interested in the Petroleo Brasileiro ADR Reptg 2 (NYSE: PBR) Golfinho offshore oilfields. It is the reason they submitted their binding offers.

Paying off the significant debts

Petroleo Brasileiro SA has been struggling with the repayment of its debts, and it is set to settle for the highest bid. The company has dozens of assets for sale and will use a part of the proceeds to settle its debts. It also wants to focus on deepwater oil production and use the money for that purpose. 

Golfinho happens to be one of the mature oilfields the company intends to divest. The asset lies off the coast of the country’s southeastern Espirito Santo state. 

Golfinho has been a lucrative opportunity, and that is considering its high production capacity. It produces almost 14,900 barrels on an average day and 750,000 cubic meters of gas over the same period. Petrobras recently presented its bidding documents, and they outlined the figures as mentioned above.

Petrobras has 11.36 billion reais ($2.3 billion) to its name. It says that it raised the sum following its participation in one of the significant share offerings conducted in Brazil.

Divestments

The company seems more focused on divestments, and it wants to do the same with the remaining stake of 37.5% that it has in Petrobras Distribuidora SA. It was two years ago that the company privatized the subsidiary mentioned above. However, it still maintained a minority stake in the entity. Therefore, the divestment of 436.9 million shares seems to be a rather serious move, but it maintains that it is the best thing to do now. 

It was in mid-June that BW and DBO announced the submission of their bids. Petrobras wants what is best for its business and will act accordingly. It has arranged for some bilateral negotiations, and it will be settling for the leading bidder. It might take the company a few days or weeks to exact its move.

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