| RIO DE JANEIRO, Oct. 4
RIO DE JANEIRO, Oct. 4 Petróleo Brasileiro SA
and Norway's Statoil ASA are expanding an existing partnership
to help the Brazilian state-controlled company arrest declining
production at aging wells in the offshore Campos Basin, two
people with direct knowledge of the plan said.
In late August, Petrobras and Statoil
signed a memorandum of understanding that has since evolved to
targeting aging wells. Both firms are discussing under which
terms Statoil could get stakes in some fields in exchange for
fresh investment and technological cooperation, the people said.
Press representatives for Petrobras did not have a comment.
The sources asked not to be identified because the talks remain
However, in an emailed statement to Reuters, Oslo-based
Statoil acknowledged the plan, adding that it is too early to
elaborate on the evolution of the talks.
The decision underscores steps by Chief Executive Officer
Pedro Parente to rationalize capital spending at Petrobras, and
cope with the impact of low oil prices and a sweeping corruption
scandal involving the company.
The Campos Basin, which was responsible for about 85 percent
of Brazil's oil output five years ago, accounts now for 58
percent. Petrobras produces about 80 percent of Brazil's oil and
is responsible for developing massive offshore oil finds in a
region known as the Subsalt Polygon, which first produced oil in
The move comes two months after Statoil agreed to pay $2.5
billion for a 66 percent stake in Carcará, one of Petrobras'
largest oil and gas prospects. Recently, the companies signed a
deal in which they said would collaborate on existing fields in
Brazil's Campos and Santos Basins..
The Subsalt Polygon is an offshore region near the coast of
Rio de Janeiro, where several of the world's largest recent oil
discoveries have been made.
Last month, Petrobras cut planned investments for the
2017-2021 period by 25 percent in a drive to reduce the largest
debt burden among global oil producers, at $130 billion, and
revive investor confidence battered by years of over
Capital spending plans for existing Campos Basin wells
suffered the most with the cuts, one of the people said.
The 2017-2021 business plan lowered the estimate for the
rate of decline of production in the Campos Basin to 9 percent a
year. Petrobras had a prior estimate of a decline between 12
percent and 15 percent.
The plan included the need for production partnerships in
the Campos Basin, especially to revive output in the basin's
(Writing and additional reporting by Guillermo Parra-Bernal;
Editing by Bernrard Orr)