Brazilian state-owned oil and gas giant Petrobras is set to acquire stakes in three exploratory blocks in São Tomé and Príncipe in Africa through a competitive process conducted by Shell.
Petrobras reported on December 27 that its Board of Directors had approved the company’s operations in São Tomé and Príncipe, a country on the west coast of Africa, enabling the acquisition of stakes in three exploratory blocks.
The transaction is part of the scope of a memorandum of understanding (MoU) that CEOs of Petrobras and Shell, Jean-Paul Prates and Wael Sawan, signed in March 2023, whose objective includes, among others, the identification of business opportunities between the companies in the upstream segment, such as the acquisition in partnership of the 29 exploratory blocks in the Pelotas basin in the 4th Permanent Concession Offer Cycle that took place on December 13.
Petrobras thus acquired a 45% stake in blocks 10 and 13 and a 25% stake in block 11. Shell as the operator holds 40% stakes in all three and ANP-STP holds 15%, while Galp is involved only in block 11 with a 20% stake.
The move will mark the resumption of exploratory operations in Africa with the aim of diversifying the portfolio and is in line with the company’s long-term strategy, aimed at rebuilding oil and gas reserves by exploring new frontiers and working in partnership.
According to the Brazilian company, the acquisition of the blocks in São Tomé and Príncipe complied with all the company’s internal and governance procedures and is in line with its Strategic Plan 2024-2028+ (SP 2024-28+) and is subject to approval by the local regulatory bodies.
Petrobras unveiled its new strategic plan in mid-November, outlining that oil and natural gas would be given the biggest slice of the $102 billion investment pie, as drivers of growth, propelling and funding the energy transition to greener sources of supply.
In line with its net zero goals, the company plans to dish out $11.5 billion on projects that will enable a reduction in its carbon footprint, spotlighting the role of biorefining, wind, solar, carbon capture, utilization and storage (CCUS), and hydrogen in this decarbonization quest.