Petrobras’ Acquisition of Oil Fields by BW Energy Delayed Following Suspension of State-Owned Company’s Divestments by the Ministry of Mines and Energy (MME)

The MME Determined the Suspension of the Sale of the Oil Company’s Assets for a Review of the National Energy Policy. Now, the Transaction of BW Energy with Petrobras for the Purchase of Brazilian Oilfields is Facing Delays, Reports Multinational.

The multinational energy company BW Energy recently announced new delays in the process of acquiring Petrobras’ deepwater oil fields of Golfinho and Camarupim. The assets, located in the Espírito Santo Basin, are part of the divestment plan of the state-owned company, which had to be suspended following a recommendation from the Ministry of Mines and Energy (MME). The multinational emphasized that it will keep the global market updated on decisions regarding the transaction.

MME Determines Suspension of Petrobras’ Divestment Projects in Its Oil Fields and Delays the Oil Company’s Transaction with BW Energy

Petrobras continues to feel the impact of the MME’s decision to suspend the sale process of its oil fields in the international market. In addition to the shares having plunged after the announcement this Wednesday, the company’s transactions are now threatened.

BW Energy, which was negotiating the purchase of the deepwater oil fields of Golfinho and Camarupim, located in the Espírito Santo Basin, announced that the ministry’s request will delay the finalization of the acquisition.

“BW Energy was informed by Petrobras about a review of the transactions of the Golfinho and Camarupim Clusters as part of a broader analysis of Petrobras’ ongoing divestment program initiated by the Ministry of Mines and Energy (MME) in Brazil,” the multinational stated in a recent announcement.

The MME justified the suspension of the sale of Petrobras’ oil fields based on the review of the National Energy Policy.

The ministry’s goal is to ensure the necessary changes in policy, based on the assets currently owned by the state-owned company.

During June 2022, BW Energy closed a deal with the state oil company to acquire 100% operational interest (WI) in the Golfinho and Camarupim Clusters in the Espírito Santo Basin.

The company aimed to expand its operations in oil exploration in Brazilian fields over the coming years. The expectation was to finalize the transaction within 2023.

However, the new decision from the MME has sidelined the plans of both the multinational and the state oil company.

Lula Government Seeks to Keep Petrobras’ Assets Under the Company’s Control. Company Highlights it Will Keep the Market Updated on the Transaction 

In addition to the review of the National Energy Policy by Petrobras, the establishment of a new composition of the National Energy Policy Council (CNPE) is another factor that led the MME to make the decision to suspend the sale of the company’s assets.

The Lula Government has already reinforced its position regarding the privatization processes of the state-owned assets. The goal is to keep as many oil fields under federal control as possible.

The ministry’s decision is significantly affecting the oil company’s processes, even though Petrobras insists this is not happening.

The state-owned company’s shares fell considerably over the last Wednesday, due to uncertainty about investments in the company’s oil fields.

Now, BW Energy highlights the delays in the purchase of the oil company’s assets in the Espírito Santo Basin.

In the coming days, what is expected is that the transaction of BW Energy with Petrobras will not be affected, as well as new updates from the MME regarding the process of selling the company’s oil fields.