PETROBRAS SET TO SELL OFF ASSETS TO REDUCE DEBTS

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Petrobras set to sell of assets to reduce debts.

In a bid to lower its debt burden, Brasil’s  oil explorer Petrobras has been desperately seeking to sell off some off its assets.

The company owes more than $110 billion in short and long term debt making it the largest in Brazil and one of the largest debt burdens of any publicly traded company in the Americas.

In an attempt to reduce the debts, Petrobras who are undergoing financial crises put has up jackup oil and gas drilling platforms P-59 and P-60 for sale.

Both platforms were built by two of  Brazil’s largest construction conglomerates Odebrecht and Queiroz Galvao and purchased by Petrobras for a whopping $680 million after they got involved in a huge corruption scandal.

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Petrobras is asking $20 million for both platforms, for a total minimum bid of $40 million.

The platforms were a one of a kind in Brasil and was able to work out roughly $80 billion in market cap for Petrobras.

“It’s absurd to sell two brand new rigs for this price,” Petroleum Federation union leader Jose Maria Rangal said.

In any case, Petrobras has said that the $20 million was only a bidding price and hopes to get more for the rig.

The company is also looking to get rid of other rigs that are no longer in service and are also collecting dust and barnacles. They include older rigs P-III, P-X, P-XVI, P-XVII and P-XXXIII.

Source : forbes

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