Petrobras Eyes Sale of Peru Assets for $2 Billion

Brazilian energy giant Petrobras is in talks to sell its Peruvian assets to China National Petroleum Corporation, according to financial daily Gestion.

The deal could be worth approximately $2 billion.

Petrobras’ assets in Peru include Block X in the coastal region of Piura, as well as stakes in Blocks 57 and 58 in Peru’s Amazon region, among others.

Petrobras seeks to sell its assets as it plans to focus its resources on developing large energy projects in Brazil.

A group of companies led by Petrobras was recently awarded a concession to develop the massive Libra oil prospect off the coast of Brazil in the Atlantic Ocean. The venture also includes Royal Dutch Shell, Total and the China National Petroleum Corp.

News that Petrobras was seeking to leave Peru came out earlier this year. The company would be the second international oil firm to sell its assets in the Andean nation in recent years, following the withdrawal of Calgary-based Talisman last year from Block 65 in northeastern Peru to focus its assets in Canada and Asia.

Many oil companies have struggled to find and develop projects in Peru, saying that part of the challenge is over the issues of permits, which involve environmental impact studies and, in the Amazon region, prior consultation with indigenous communities.

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