Malaysia’s state-owned oil and gas company, Petronas, is looking to divest its 50% stake in the Tartaruga Verde field in Brazil. The company aims to secure proceeds of up to $1 billion, according to a report from Bloomberg, which cites unnamed sources. Petronas acquired this stake in 2019 from Brazilian energy giant Petrobras, which retains the remaining 50% of the field located in the Campos Basin, an area recognized for its significant oil production capabilities.
In addition to the divestment in Brazil, reports have surfaced that Petronas is also considering selling its Canadian business. The company’s Canadian segment is estimated to be valued between $6 billion and $7 billion. Petronas is engaging a financial adviser to explore strategic alternatives, potentially including a minority stake sale, depending on market interest and valuations.
Petrobras Focuses on Existing Fields
Petrobras has stated its intention to prioritize the development of existing oil fields over new exploration ventures. The company aims to enhance production from aging fields, particularly in the Campos Basin, where recovery rates have dropped to a concerning 17%. The decline in production rates has raised concerns among Petrobras’ management, as highlighted by CEO Magda Chambriard.
Despite these challenges, Petrobras has recorded a notable increase in production. In the second quarter of this year, the company produced 2.7 million barrels of oil equivalent, marking a 2.4% increase as it ramped up operations at five platforms and initiated drilling for twelve new wells—eight in the Campos Basin and four in the Santos Basin. This surge in production comes after a 25% decline earlier in the year due to maintenance work on several platforms.
The return of these platforms to operational status is expected to bolster Brazil’s oil output, with projections indicating that production levels could surpass previous forecasts. The early commencement of certain projects is anticipated to further support this recovery later in the year.
Petronas’s divestment plans reflect a broader trend in the industry where companies are reassessing their portfolios amidst fluctuating market conditions and operational challenges. As Petronas seeks buyers for its stake in Tartaruga Verde, all eyes will be on how this decision impacts its overall strategy in the region and the implications for its partnership with Petrobras.
