Brazil's Vale to Sell Oil & Gas Concessions to Statoil

December 27, 2012

Brazil's mining giant Vale announced Wednesday it would sell its stakes in an oil and gas exploration partnership with Statoil Brazil for 40 million U.S. dollars in cash, according to Xinhua.

The world's leading iron ore producer said it has clinched a deal with Statoil Brasil, the Brazilian branch of Norwegian energy company Statoil, to sell its 25 percent stakes in the BM-ES-22A concession in the Espirito Santo Basin, off Brazil's southeastern coast.

The sale would "exempt Vale from committed expenditures of approximately 80 million dollars until the end of 2013," the company said.

The transaction, which is still subject to contractual and regulatory conditions and approvals before closing, was part of the strategy of getting rid of assets unrelated to main activities, Vale added.

The latest move came less than a month after Vale announced a cut of its investment budget for 2013 by 24 percent to 16.3 billion dollars at the start of this month.

Copyright 2012, Xinhua. All rights reserved.