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Petrobras (PBR) Terminates Albacora Field Sale Negotiations

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Petrobras (PBR - Free Report) has decided to end the competitive process for the sale of the Albacora concession in the Santos Basin offshore Brazil.

The Brazilian state-owned oil major was in negotiation with PetroRio for the sale, but the two parties could not reach an agreement on commercial conditions. This prompted PBR to pull out of the process.

Petrobras, however, will continue to invest in the Albacora revitalization project, with plans to develop production from the Forno reservoir situated in the Albacora pre-salt. The firm will also contract a new FPSO-type platform to replace the two production units presently in operation.

The decision to terminate the Albacora sale process does not affect the ongoing divestment of the Albacora East field. In April, PetroRio signed an agreement with Petrobras for the acquisition of a 90% interest and the operation of the field.

Headquartered in Rio de Janeiro, Petroleo Brasileiro S.A. or Petrobras S.A. is the largest integrated energy firm in Brazil and one of the largest in Latin America. PBR’s activities include the exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trading and transportation.

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