Brazilian petroleum regulator ANP had extended state-run oil company Petrobras’ concessions to explore and produce oil from the Marlim and Voador offshore fields for 27 years, to 2052, Reuters reported.
The extensions were made to help facilitate new investment in the fields that will require work to help maintain their declining output, a statement by the ANP was quoted by Yahoo Finance. Actually, the ANP has pressured the company to use more of its shrinking investment budget to improve output in Marlim and other Campos Basin offshore fields near Rio de Janeiro. These fields have been declining nearly as fast as Petrobras can add new output, and consequence, it has also deprived the state of royalties and other taxes in the midst of a recession.
Petrobras is struggling with low oil prices, nearly $130b of debt, and stagnant output. To cut debt and increase its investment budget, the company is seeking to sell $14b of asset this year, including stakes in existing fields or prospects. Extending the rights to the fields and their oil and gas could make selling them, or raising debt to finance improvements, easier for Petrobras.