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Petróleo Brasileiro SA ( PETR4.SA ) rejected the latest proposal from a company backed by EIG Global Energy Partners to buy a pair of shallow water clusters, two sources with direct knowledge of the subject. , potentially derailing a large divestment at the end of the process.
Ouro Preto Óleo e Gás, a Brazilian energy company backed by the private equity firm EIG, focused on the sector, entered exclusive negotiations in July with Petrobras, as the state-owned oil company is known, to buy its Pampo and Enchova clusters. At the time, the fields, located in the Campos Basin off the coast of Rio de Janeiro, were estimated at about US $ 1 billion.
Petrobras is cutting off holdings in shallow water fields to focus on Brazils largest deepwater game. This is creating an opportunity for small oil companies and private equity firms willing to extract value from relatively mature assets. But the process has been rocky at times.
For Petrobras, the collapse or delay of the agreement between Pampo and Enchova could undermine its offer to reach an ambitious goal of divesting US $ 26.9 billion over five years. With a combined oil production of around 39,000 barrels per day, Pampo and Enchova are the largest mature production assets currently in Petrobras divestment portfolio.
In December, Petrobras reopened the bidding for the clusters, as the Brazilian federal audit court, known as TCU, requires for most of Petrobras divestments. Under the final round of re-bidding, investors may submit bids for varying amounts as long as they have the same contractual terms as the winning bid for the original round.
Ouro Preto took advantage of the rivet process to reduce its offer, partly because of falling oil prices, Reuters reported in December.
However, Petrobras, dissatisfied with the cut in prices in Ouro Preto, rejected the consortiums updated proposal, according to sources, who requested anonymity to discuss confidential matters.
EIG and Ouro Preto declined to comment. Petrobras did not respond to a request for comment.
The setback underscores the slow, sometimes complicated, process around the divestments of Petrobras, which has often frustrated potential buyers.
The next steps in the divestment of Pampo and Enchova are not clear. One source said the Ouro Preto consortium may try to return to the table to resume bilateral talks with Petrobras.
If Petrobras reopens the process to other potential buyers or opens a new round of bids, this could create an opportunity for companies such as Trident Energy, backed by private equity firm Warburg Pincus, which submitted an offer to Pampo and Enchova during the original bid. round in the middle of 2018.Trident did not respond to a request for comment. |
