Petrobras (NYSE:PBR) said Friday it is seeking potential buyers for its potash mining rights in the Amazon Basin, part of the oil producer's strategy to divest non-core assets to focus on its hydrocarbon discoveries in the pre-salt offshore region.
The assets for sale include eight mining concessions, four mining requests already granted, and 22 mining titles in the process of obtaining a research authorization from the local mining agency.
The potash potential is equivalent to 6% of current global production and more than a third of Brazil's annual consumption, Petrobras (PBR) said.
The war in Ukraine has made potash assets more attractive, as prices soared after the invasion before paring gains as Russian product stabilizes; Brazil's farm sector relies on imports for 80% of its fertilizer use.
Petrobras' (PBR) record breaking Q2 with nearly $50B in annualized free cash flow "shows its strength in a high price environment," The Value Portfolio writes in a bullish analysis published on Seeking Alpha.