Petrobras considers selling onshore assets in response to lower oil prices

(Bloomberg) – Petroleo Brasileiro SA is considering the sale of its onshore operations in Brazil’s northeastern Bahia state, Chief Executive Officer Magda Chambriard said. 

Producing oil and gas on the so-called Polo Bahia Terra is too expensive given that it yields less than a single well on the pre-salt, a deepwater region in the Atlantic that accounts for more than 70% of Brazil’s output, Chambriard told journalists on the sidelines of Brazil-China shipbuilding forum.

“When oil is at $100 a barrel it makes more sense than at $65 a barrel,” she said. “We haven’t yet decided what to do: whether to keep it, outsource the operation or simply pass on the asset.”

The Bahia Terra cluster produces around 12,400 boed, according to Brazil’s oil regulator. 

Petrobras started a process to sell its concessions in the area in 2020, but decided to halt after President Luiz Inacio Lula da Silva retook office in 2023.