WORLDCLASS OIL TRADERS COMPETE FOR PETROBRAS AFRICA

Shell, Vitol and Glencore battle to buy Petrobras Africa.

Three of the world’s largest oil traders are competing to buy assets of the African arm of Brazil’s petroleum corporation Petroleo Brasileiro SA (Petrobras).

The three companies competing to buy the Petrobras Nigerian assets include; Shell, Vitol and Glencore. Petrobas Oil & Gas BV, or Petrobras Africa owns two world class Nigerian deep-water oil blocks containing the Agbami and Akpo producing fields operated by Total SA and Chevron Corp respectively.

Petrobras Oil & Gas BV is a joint venture with Petrobas having 50% shares, while Grupo BTG Pactual SA and Helios Investments own 40% and 10% respectively.

The decision to sell Petrobras Africa came up last year November as part of  Brazil’s Petrobas attempt to offload US$21bn in assets through 2018 due to debt and also corruption scandal.

This sale have attracted top trading firms which are always on the look out for long-term crude supplies opportunities. Mercuria and BP had also its potential.

Bankers have previously estimated the value of the Petrobras venture to be about US$2 billion.

Grupo BTG Pactual SA have earlier this year tried selling its own stake separately. There were talks with a group of Nigerian investors but no agreement was reached.

Petrobras, is the world’s most indebted oil company. The sale of this asset is indeed an aggressive move to cut debt.

 

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