Brazil’s Petrobras gives up on search for oil in Portugal

12 November 2013

Brazilian oil company Petrobras plans to close its prospecting activities in Portugal due to a lack of positive results, a company official told Portugeuse daily newspaper Público.

The Petrobras official said that after evaluating the geological and geophysical results in the concession areas a decision had been made that there was no justifiable reason to continue with the project.

The same official said that “as there are no other projects that are a strategic part of the Business and Management Plan,” set by the company for 2013-2017, it “made the decision to close its business in Portugal, meeting its formal commitmments to workers, to the Portuguese State, to suppliers and other interested parties.”

Petrobras had been in Portugal since 2007 and, in partnership with Galp Energia, held a concession to explore seven deep water blocks: Four in the Peniche basin (Camarão, Amêijoa, Mexilhão and Ostra) and three in the Alentejo basin (Gamba, Santola and Lavagante), with a 50 percent stake in each of them.

The decision to leave Portugal is part of the strategy put in place by the company’s president, Graça Foster, to focus on investments in the Brazilian pre-salt alyer and divest its non-strategic assets abroad, a policy whuch. according to Brazilian newspaper Estado de São Paulo, may lead to the closure of 38 Petrobras operations by 2015.

Along with Portugal, Petrobras’ operations in Australia, Iran, New Zealand, Turkey and Libya are also being wrapped up. (macauhub)