Petrobras to launch auction of Nigerian oil blocks

rig roger melbPetrobras has hired South Africa’s Standard Chartered Bank to execute the auction. (Image source: roger_melb/Flickr)Brazilian multinational energy corporation Petrobras has revealed plans to auction its interests in Nigerian oil fields in an attempt to raise funds for its capital spending plan

According to a report on Reuters, the sale of the oil fields may raise up to US$5bn. The Brazilian oil company has hired South Africa’s Standard Chartered Bank to execute the process that would commence in two months.

Asian state oil companies will be expected to participate in the auction, in a bid to add more production assets to their portfolios, however, Standard Chartered and Petrobras have both declined to comment on the details of the deal.

Petrobras started oil operations in Nigeria in 1998 and currently owns a stake of eight per cent in the offshore Agbami blocks operated by American energy major Chevron and a 20 per cent share of the offshore Akpo project, operated by French oil firm Total.

Capacity of the Agbami fields has been estimated be 900mn barrels of oil equivalent with a potential output of 250,000 bpd, while Akpo’s probable reserves stands at 620mn barrels of condensate.

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