Home Business News Here's why Petrobras will sell off its stake in African unit

Here’s why Petrobras will sell off its stake in African unit

-

Brazilian Oil giant, Petrobras has announced its intentions to sell its holdings in  Petrobras Africa which has stakes  in two major Joint Ventures (JV) Akpo and Agbami. Two other shareholders of the African unit, Helios Investments and Grupo BTG Pactual  E and P ( a subsidiary of investment bank Grupo BTG Pactual SA) are also selling their stake. Petrobras Africa has a 20% stake in Akpo and an 8% stake in Agbami, operated by Total and Chveron respectively.

Reasons behind the sale

Petrobras is selling the stake as part of a wider asset divestment programme to reduce its indebtedness.  The company has an estimated $89 billion in liabilities.

Why this is a major deal

The stakes being sold are two of Nigeria’s largest deepwater offshore oil fields. The Akpo field has an estimated peak production capacity of 175,000 barrels per day, while Agbami is currently producing 200,000 barrels per day.

Petrobras was established in 1953, and is the Brazilian national oil company. The Brazilian government owns 54% of the voting rights, while the Brazilian Development Bank and the Brazilian Sovereign Wealth Fund each own 5%. The company is listed on the Brazilian, New York, Frankfurt stock exchanges. The company had an estimated revenue of $87 billion for the financial year ended 2016. Petrobras has recently being engulfed in a corruption scandal, involving inflation of contracts awarded by the firm, and bribery of politicians in Brazil.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Popular

Understanding Mutual Fund Fees

INSIGHT: Why you really should consider investing in mutual fund today

A Mutual Fund is a Trust or Company that pools money from many investors and invests in a specified class of securities such as stocks, bonds, real estate or a balanced mix of asset classes.
Rubies Bank

Rubies Bank – The Future is here

Rubies is a fully digital banking platform, offering zero fee banking targeted at millennials, young professionals, SMEs, quasi-financial institutions and FINTECH companies.
Ellah Lakes appoints new Managing Director, Ellah Lakes appoints Chuka Mordi, Ellah Lakes acquires Telluria Limited, Nigerian Stock Exchange NSE

NSE has placed these 34 companies on red alert

Authorities of the Nigerian Stock Exchange (NSE) has placed red alerts on some 34 quoted companies as a disciplinary measure for breaching some of its extant rules.