DBO Energy, an oil and gas firm backed by Germany’s RWE AG, is in bilateral talks with Petrobras to buy the Golfinho oilfield cluster in Brazil, two sources said, as the state-run oil company kicks its ambitious divestment program back into gear.
Golfinho is one of dozens of legacy production assets that Petroleo Brasileiro SA, as the company is formally known, is selling in a bid to reduce debt and sharpen its focus on a prolific, deepwater formation called the presalt.
The company struggled to deleverage for most of last year as the pandemic sapped demand for oil-producing assets.
But in recent months, Petrobras has sped back up its asset sales, accepting binding offers for a number of major assets, including five refineries and an onshore oilfield cluster known as Urucu.
Petrobras and DBO declined to comment.
Golfinho, a mature deepwater cluster located off the coast of Espirito Santo state, was among the last major production assets that Petrobras put on the block before COVID-19 hit Brazil in earnest.
The cluster was producing 14,900 barrels of oil and condensate per day, according to January 2020 bidding documents.
One person involved in the deal said the parties were discussing dollar values in the nine-digit range.
Any deal is still months from closing, the source added.
Norway’s BW Energy Ltd. was among the firms that mulled a bid, but ultimately decided not to make a binding offer, according to another source, as well as a third source with knowledge of the matter. All the sources requested anonymity to discuss confidential matters.
BW did not respond to a request for comment.
Rio de Janeiro-based DBO is composed of Brazilian and Norwegian executives who have experience operating mature assets both in Brazil and in the North Sea, according to the company’s website. The firm lists RWE Supply & Trading, an arm of RWE, as an investor.
Recommended Reading
Chevron’s Wirth: Biden Admin Needs to Embrace, not Attack Natgas
2024-09-17 - Chevron CEO Mike Wirth, speaking at Gastech Houston 2024, said natural gas offers a clear path to lowering CO2 emissions that only politics can derail.
Study: Global Gas Supply Not Keeping Up with Demand
2024-08-28 - Without significant growth in natural gas supply and infrastructure, the world will come up a fifth short of the supply needs, according to the International Gas Union.
Electrification Lights Up Need for Gas, LNG
2024-09-20 - As global power demand rises, much of the world is unable to grasp the need for gas or the connection to LNG, experts said.
IGU: Global Liquefaction Capacity Expected to Grow by 75% by 2030
2024-07-02 - The International Gas Union (IGU) expects global liquefaction capacity to reach 700 mtpa by 2030, up 75% from 2023, driven by new FIDs and the start-up of other projects under construction.
TotalEnergies Joins Ruwais LNG Project in UAE
2024-07-11 - French energy giant TotalEneriges joined the two-train 9.6 million tonnes per annum Ruwais LNG project in the United Arab Emirates with a 10% interest. The LNG project is expected to start sending out cargos in the second half of 2028.