Analyst: Petrobras’ Divestment Plan Is Attractive But Challenging

RIO DE JANEIRO—Brazil’s state-run oil company Petrobras intends to sell 70% of its 254 assets located in mature and shallow-water fields in the country.

The announcement was made in January and reported to Brazil’s oil and gas regulator ANP. Most of the assets to be sold are located in Brazil’s northeast region. The move reinforces the commitment of the new Brazilian administration, which took office in January, to make the company more business oriented and financially healthier.

Petrobras has conducted its divestment plan over the past three years in an effort to tackle its giant debt, which had risen to more than $100 billion by 2015. The Brazilian operator expects to raise US$26.9 billion through 2023 with this divestment process. In November, Petrobras reported that it reached US$8.3 billion through divestments carried out between 2017 and 2018.