Petrobras sells Nigerian oilfield stake to Vitol-led group for $1.407 billion

Petrobras sells its 50% stake in a Nigerian oil and gas exploration venture.

Brazil’s Petroleo Brasileiro SA has sold its 50% stake in a Nigerian oil and gas exploration venture to a consortium led by top oil trader Vitol for $1.407 billion.

The consortium was led by Vitol and comprising Africa Oil Corp, Delonex Energy Ltd. and Vitol Investment Partnership II Ltd. Africa Oil has 25% in the deal, Delonex Energy Ltd (25%) and Vitol Investment Partnership II Ltd. (50%)

The venture has stakes in two offshore blocks that contain two producing fields, the major Agbami field in OML 127, operated by a local Chevron affiliate and the Akpo field in OML 130 operated by Total SA.

Vitol, in a statement seen by Business Insider by Pulse, said the oilfield's current production of 368,000 barrels per day is anticipated to increase to over 568,000 barrels per day by the second half of 2019.

Russell Hardy, CEO, Vitol said, “Vitol has a long history of investing in Nigeria’s energy sector. We are pleased and proud to add this significant upstream asset to our infrastructure and downstream Nigerian investments. POGBV has a strong non-operated portfolio, managed by Chevron and Total, and which represents circa 20% of Nigerian production. Vitol looks forward to growing and investing in Nigeria.”

The Brazilian investment bank BTG Pactual, which owned the other 50% stake in the Petrobras Oil and Gas BV, also known as Petrobras Africa, is holding hold to its portion.

In March 2018, Business Insider by Pulse reported that Vitol and Glencore offered financial backing to Seplat and some Nigerian firms to buy stakes in Brazil’s Petrobras valued at up to $2 billion.

Glencore was said to have back Nigerian producer Seplat in bidding for the assets while Vitol backed several bidders in the process although the two companies declined to comment.

In a similar report, Reuters reported that Petrobras had planned wider divestment to cut debt by offloading a $21 billion assets through mid-2018 but only succeeded in unloading $9.5 billion worth by the end of the first half.