Petrobras, the Brazilian oil giant, would be auctioning off its holdings over Nigerian oil fields in order to raise funds for its domestic projects. The valuation of the assets may reach up to US$5 billion according to sources close to the deal.
The company formally known as Petroleo Brasileiro SA has engaged the services of Standard Charter Bank to oversee the sale process. It is expected that the auction would commence in the next two months according to some industry experts.
The expected bidders include Asian state oil companies who are hoping to expand their production assets as well as private equity firms who are seeking deals in the oil industry.
The withdrawal from the Nigerian projects is in line with the country's goal of making Brazil self-sufficient in oil and energy. The stakes are at 8% in the Nigerian offshore Agbami blocks, operated by Chevron and its 20% share in the Akpo offshore project, which is operated by Total Energy.
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