Brazil: Petrobras Ends Operational Activities In Africa

Brazil's state-controlled oil company Petroleo Brasileiro SA, known locally as Petrobras, has said it "completely closed its operational activities" in Africa.

The statement came on Tuesday after the company finalized the sale of a 50% stake in the Netherlands-based Petrobras Oil & Gas BV, which holds some 8% Nigerian oil assets, for $1.4 billion to Petrovida Holding.

Petrovida Holding is formed by Vitol Investment Partnership II, Africa Oil Corp and Delonex Energy.

Additionally, Petrobras, which has its global headquarters in Rio de Janeiro, is expected to suspend operations at its wholly-owned Araucaria Nitrogenados fertilizer plant in Parana state, the company announced in another statement.

The plant reportedly has been recording constant losses since 2013 when it was first acquired from mining conglomerate Vale.

"The decision is in line with Petrobras' strategic positioning to fully exit the fertilizer business and in line with portfolio optimization and improved capital allocation of the company," the firm explained.

Around 400 employees at the plant will be made redundant.

Petrobras, with a pumping capacity of more than 2.5 million barrels of oil a day in 13 refineries, employs around 63,000 employees.

According to its website, the company boasts a little less than 10 billion barrels of proved reserves. -