Petrobras Authorized to Resume Production at Bahia Terra Oil Fields

By Jeffrey T. Lewis

SÃO PAULO--Petróleo Brasileiro SA, or Petrobras, has received authorization to restart production at its Bahia Terra oil fields after Brazilian authorities shut down its operations in December over safety concerns.

The state-controlled oil company said Thursday after the close that it has begun the operational procedures necessary for production at the Bahia Terra oil fields to resume.

In December, Brazil's National Petroleum, Natural Gas and Biofuels Agency, or ANP, shut down 38 facilities in the area, including 28 onshore production fields, citing deficiencies in fire-fighting equipment and certain vital sensors.

Petrobras is in the process of selling off a series of assets, including many onshore fields, with the Bahia Terra complex among them. Brazil's new president, Luiz Inácio Lula da Silva, has called for ending the sale of state assets.

Write to Jeffrey T. Lewis at [e-mail]

(END) Dow Jones Newswires

04-14-23 0808ET