News / Business

Brazil's Petrobras says not considering Libra stake sale

Saturday, 12 December 2015 4:50 AM [ Last Update: Saturday, 12 December 2015 4:53 AM ]

Installations are seen in Libra oil field off Brazil.

Brazil’s state-run oil company Petrobras says it has no plan for the time being to sell a 10% stake in its giant Libra offshore oil field.

The company’s announcement on Friday came in response to earlier reports that the Libra stake was on offer, Reuters reported.

Petrobras hopes to cut debt by selling $15.1 billion of assets by the end of next year through offering investors the chance to buy oil fields, refineries and other properties.

Libra is estimated to hold between 8 billion and 12 billion barrels of recoverable oil and gas.

One of the world’s largest undeveloped oil reservoirs, Libra can meet all oil needs in the United States for as much as 20 months at current consumption levels.

Petrobras has so far sold only about 3 percent of its asset sale goal.

The company’s chief executive, Aldemir Bendine, recently told Brazil's Congress that Petrobras will not be able to settle its debts and maintain a $19 billion investment plan in 2016 before meeting asset-sale goals.

The state-run company is facing a nearly $130 billion debt.

Petrobras owns 40% of Libra, France's Total SA 20%, Royal Dutch Shell Plc 20%, and China's CNOOC and China National Petroleum Co each own 10%.

Libra is expected to start producing oil in the first quarter of 2017.

Headquartered in the city of Rio de Janeiro, Petrobras is the largest integrated energy firm in Brazil and one of the largest in Latin America.

The company boasts satisfactory production growth and China's loans are hoped to offer some relief considering Petrobras' huge debt burden and the money-laundering scandal, which has scarred its reputation.

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