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Boston, MA 11/27/2013 (wallstreetpr) – Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) has a plan, a plan that could change its misfortunes in terms of declining profits in recent times. The company stated that it seeks to liquidate some of its foreign assets valued at $9.9 billion. Some of these assets are in Africa and Gulf of Mexico.

The state-run oil company operates in a very complex environment where oil pricing policies often impact on its profits. But it is expected that its 2013-2017 business plan will help it focus more on domestic fields and more importantly improve its profits. In its Q3 reporting last month, Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) reported a material decline in its profits in the quarter at 40%.

The oil company is now planning to invest about $237 billion through 2017 in deep-water fields and development of refineries. In order to raise this money, PBR is selling its Peruvian assets to PetroChina for $2.6 billion. These sales capture at least three oil and gas blocks and fields in Peru. Among the three units up for sale to PetroChina, two are wholly owned by Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) while one is owned 46% by the Brazilian oil company.

This deal was announced earlier this month. However, since then a lot has cooled off of the planned divestment by the Brazilian state-operated oil company. In any case, the acquisition deal with PetroChina is still awaiting approval of Beijing and Peru authorities.

It is highly likely that Beijing will not stand in the way of the deal considering that China endorses the idea of state dominance of the economy. But the case in Peru is a wait and see situation. But even as the deal with PetroChina awaits regulatory clearance, it seems that Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR)’s divestment plans are unfolding a very slow pace, something that could delay the company’s forward march.

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