Petrobras withdraws from Albacora negotiations

RIO DE JANEIRO, Brazil—Petrobras’ board has decided to terminate the competitive sale process for the deepwater Albacora concession in the Santos Basin offshore Brazil.

The company had been negotiating the sale of the Albacora Field to PetroRio, but the two sides could not reach agreement on the commercial conditions.

Petrobras will now pursue its Albacora revitalization project, which includes production from the Forno reservoir in the Albacora presalt, with a new FPSO brought into replace the current P-25 and P-31 platforms.

The decision does not affect the divestment of the Albacora East Field. The company signed a sale contract with PetroRio in April and remains committed to closing this transaction.

Petrobras has extended deadlines for companies to express an interest in its planned sale of a 40% interest in the deepwater BM-POT-17 exploratory concessions (three blocks) in the Potiguar Basin off the coast of Rio Grande do Norte.