Norway-linked firms mull bids for Petrobras' Golfinho field in Brazil, sources say

Bw Offshore

10/07/2020 12:00

By Gram Slattery
    RIO DE JANEIRO, July 10 (Reuters) - Norway's BW Offshore Ltd
 BWO.OL  and DBO Energy are among the firms mulling a bid for
Petrobras' Golfinho oilfield cluster, two sources said, as
Brazil's state-run oil company seeks to re-spark its asset sale
program in the wake of this year's crude price crash.
    With average daily production of 15,000 barrels of oil and
750,000 cubic meters of gas, Golfinho is among the largest
production assets Petrobras currently has on the block. Binding
offers for the mature oilfield cluster, located off the coast of
Brazil's Espirito Santo state, are due in early September, said
the sources, who requested anonymity to discuss confidential
matters.
    Petroleo Brasileiro SA  PETR4.SA , as the state-run firm is
formally known, and BW Offshore declined to comment. DBO did not
respond to requests for comment.
    Petrobras is currently selling off an array of assets - from
refineries to pipelines to oilfields - in a bid to reduce debt
and sharpen its focus on a prolific, deepwater, oil-producing
region known as the "pre-salt."
    But the crash in crude and fuel prices earlier this year put
up significant hurdles to that plan with executives
acknowledging it could take longer than initially anticipated
for Petrobras to reach its de-leveraging targets.  urn:newsml:reuters.com:*:nL1N2BI1MG
    In recent weeks, Petrobras has stepped back on the gas,
accepting binding offers for a large refinery in northeastern
Brazil in late June, that analysts said could fetch up to $3
billion.  urn:newsml:reuters.com:*:nL1N2E00NM urn:newsml:reuters.com:*:nL1N2E71QW
    Rio de Janeiro-based DBO is composed of Brazilian and
Norwegian executives who have extensive 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 Germany's RWE AG  RWEG.DE , as an investor.
    BW Offshore became an operator in Brazil in 2019 after
regulators approved its $115 million purchase of Petrobras'
Maromba offshore field.  urn:newsml:reuters.com:*:nL8N25D0AH
    The sources said that other firms may also make an offer for
Golfinho. While both firms were pre-qualified to make a binding
bid, there was no guarantee either company would ultimately do
so, the sources added.

 (Reporting by Gram Slattery
Editing by Marguerita Choy)
 ((gram.slattery@thomsonreuters.com; +55-11-95057-1453))