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Petrobras (PBR) to Divest Its Stake in the MP Gulf of Mexico

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Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently commenced the opportunity disclosure stage of divesting the 20% stake held by its unit Petrobras America Inc. (PAI) in the Texas-based firm MP Gulf of Mexico, LLC (MPGOM).

MPGOM was formed in October 2018 as a joint venture between Murphy Oil Corporation (MUR - Free Report) and PAI. Murphy holds 80% of the interest in the JV while Petrobras owns the remaining stake through its PAI subsidiary.

MPGOM is the operator or non-operator in 14 offshore fields in the Gulf of Mexico. In the first half of 2021, Petrobras' share of the fields' output was 11,300 barrels per day of oil equivalent.

Prospective purchasers must express interest in buying the stake on offer by Oct 25, according to Petrobras. Oil and gas businesses interested in participating must have a market capitalization or net worth of not less than $500 million and a public credit rating of at least Ba3/BBB-.

Petrobras is involved in an extensive divestment program with the aim to pay off debt and free up capital for deepwater offshore projects. The latest transaction is in line with the company’s portfolio optimization strategy as it focuses its resources on high-quality assets in deep and ultradeep waters wherein it showed a great competitive edge over the years.

Also, last month, Petrobras announced that it completed the transfer of its 10% stake in the Lapa field in the pre-salt area of the Santos Basin to the global integrated oil and gas company TotalEnergies (TTE - Free Report) .

The company will no longer have an interest in the Lapa field. With the conclusion of the agreement, TotalEnergies now owns 45% of the Lapa field while the rest is held by Royal Dutch Shell's (RDS.A - Free Report) Brazilian unit Shell Brasil Petróleo (30%), and Repsol and Sinopec’s local joint venture Repsol Sinopec Brasil (25%).

Petrobras is the largest integrated energy firm in Brazil and one of the biggest in Latin America. The company’s activities include exploration, exploitation and production of oil from the reservoir wells, shale and other rocks. The operations also include refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons apart from other energy-related operations.