Brazilian state-run oil company Petrobras has selected a consortium led by PetroRio SA for bilateral talks over the sale of its Albacora and Albacora Leste offshore oil fields, both companies said on Friday.
The value of PetroRio's bids was not immediately clear, but Petrobras said in September that "the offers may exceed $4 billion for both fields."
PetroRio shares soared on what may be a transformational deal for the Rio de Janeiro-based independent, trading up about 20% by mid-afternoon [Friday].
Shares in Petroleo Brasileiro SA, as Petrobras is formally known, were roughly flat.
"Albacora and Albacora Leste are very material assets, more than double PetroRio's production," Credit Suisse analysts said in a note calling the news a positive catalyst for PetroRio shares.
According to securities filings from PetroRio and Petrobras, the discussion of the sale agreement with Petrobras may lead to new, final offers for the fields.
Albacora Fields Map - Credit: Petrobras
It is common during Petrobras divestments for a final re-bidding round to take place after a preliminary bilateral agreement has been reached. During that phase, PetroRio's competitors would be able to make a last counteroffer of any value, as long as the terms are the same as those reached in the bilateral talks.
Reuters reported last month that, according to sources, Petrobras had picked a consortium of PetroRio and Cobra, a subsidiary of France's Vinci SA, to start bilateral talks on the Albacora offshore field.
The PetroRio consortium beat out a consortium composed of U.S. private equity firm EIG Global Energy Partners, 3R Petroleum Oleo e Gas SA and Enauta Participacoes SA , Reuters reported at the time.
(Reporting by Gabriel Araujo in Sao Paulo and Gram Slattery in Rio de Janeiro Additional reporting by Tatiana Bautzer Editing by Brad Haynes, Dan Grebler and Aurora Ellis)
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