Petrobras May Sell Campos Blocks

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Petrobras, Brazil's state-run oil producer, may sell exploration blocks in Brazil's Campos Basin, home to the bulk of the country's oil production, as part of its plan to raise $13.6 billion in cash through asset sales to partially fund the company's five-year $224.7 billion plan.

Petrobras (PBR) said on Monday it would sell some exploration blocks along with investments in Brazilian companies as part of its cash-raising efforts. The company will consider selling ''isolated blocks'' in the southeastern Campos Basin that are not a priority for it to develop, according to Bloomberg News.

The company said it expects its asset sales program to be completed within two years. Petrobras anticipates that half of the assets it sells will be located outside of its home country. Stakes in Brazil's pre-salt fields will not be put up for sale, Petrobras said.

CFO Almir Barbassa said the the company won't issue any new shares before 2015, and he expects Petrobras to be cash flow positive by 2020, according to the Wall Street Journal.