Petrobras Reconsiders Natural Gas Joint Venture

Bloomberg reported that Petroleo Brasileiro SA (NYSE:PBR), better known as Petrobras, is reviewing its investment in a Peruvian joint natural gas project with Repsol SA as it divests assets to better focus on developing its offshore oil reserves.

As quoted in the market news:

Repsol, which operates the project, extended a deadline for Petrobras to make a payment for the project after it failed to do so on time last month, an official at one of the companies, who can’t be named because the information isn’t public, said in a telephone interview yesterday.

Block 57 is located in Peru’s Amazonian jungle, where Repsol and Petrobras are developing the Kinteroni gas field. The field was expected to begin producing gas in the fourth quarter, with gross production capacity of 5 million cubic meters, Madrid-based Repsol said in July.

Click here to read the full Bloomberg report.