Of late, Petroleo Brasileiro S.A. aka Petrobras (PBR - Free Report) entered into an agreement with PetroRio Jaguar Petróleo Ltda wherein the former will sell its 30% stake in Frade concession to the latter.
The divestment also included the sale of the complete interest owned by Petrobras Frade Inversiones SA (PFISA), a unit of Petrobras, in the company Frade BV, which operates the offshore assets used in developing the Frade field production.
Proceeds from the sale will be received in part payments. Initially, a tranche of $7.5 million will be earned upon inking the deal. The remaining $92.5 million will be obtained on culminating the transaction, contingent upon certain adjustments due. Further, an amount of $20 million will be secured provided a prospective discovery is made in the field.
Petrobrasis committed to investing in deepwater and ultra-deepwater assets, especially pre-salt, which is expected to generate highest pecuniary return. With the Frade field’s divestiture, the company will be able to concentrate more on its portfolio.
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