DBO Energy takes the lead in bid for Petrobras divestment Golfinho Cluster

(Reuters) DBO Energy, an oil and gas company supported by Germany’s RWE AG, is in bilateral negotiations with Petrobras to buy the Golfinho oil hub, two sources said, as the Brazilian oil company moves forward with its ambitious divestment program.

Golfinho is one of dozens of production assets that Petrobras put up for sale in an attempt to reduce debt and focus on the pre-salt. The company struggled to deleverage for most of last year, while the pandemic undermined demand for oil-producing assets. But in recent months, Petrobras has accelerated its asset sales, opening calls for binding offers for a number of important assets, including five refineries and Polo Urucu.

Petrobras and DBO declined to comment.

Golfinho, a mature deep-water cluster off the coast of Espírito Santo, was one of the last major production assets that Petrobras put up for sale before Covid-19 really hit Brazil.

The cluster was producing 14,900 barrels of oil and condensate per day, according to the January 2020 investment process documents.

A person involved in the deal said the parties were discussing dollar figures in the nine-digit range. Any deal is still months away from closing, the source added.

Norwegian company BW Energy was among the companies that considered a proposal, but ended up deciding not to submit a binding offer, according to two other sources with knowledge of the matter. All sources requested anonymity to discuss confidential matters. BW did not respond to a request for comment.

DBO, headquartered in Rio de Janeiro, is comprised of Brazilian and Norwegian executives with experience in operating mature assets both in Brazil and in the North Sea, according to the company’s website. DBO lists RWE Supply & Trading, an arm of RWE, as an investor.

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