Chevron and Brazil's state oil company plan to sell their 100 percent ownership stake of a key deepwater field offshore of South America's largest country as they both seek to sell assets to cut costs.
The deepwater Papa Terra oil field in Brazil's Campos Basin came online in 2013 and now produces oil and gas through two offshore platforms. Brazil's Petrobras owns 62.5 percent of the project and Chevron holds the remain 37.5 percent.
Both Petrobras and Chevron confirmed their plans to sell Monday morning.
"This initiative supports the company's ongoing efforts to manage its global portfolio," Chevron said in a prepared statement.
Chevron reiterated its commitment to Brazil though in developing deepwater blocks it acquired in 2018 and 2019 in Brazil's so-called pre-salt regions.
"Brazil pre-salt, world-class resources play an important role in Chevron's global upstream strategy," the company added.
Last year, Chevron also sold its majority ownership stake in Brazil's Frade field. After that sale, the Papa Terra field was the only more mature asset Chevron still held in Brazil.
As for Petrobras, the state oil firm is looking to sell lots of assets as it continues to struggle financially in the wake of a major corruption scandal.
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