& Tobago

Very usefull links


News links




Dow Jones

Oil price



Views and News




Petrobras to sell $10 billion in assets by end of April: CEO




By Jeff Flick / Platts

Petroleumworld 03 19 2019

Brazilian state-led oil producer and refiner Petrobras expects to ramp up its divestments in the near term, with a series of deals expected to close by the end of April, according to Chief Executive Roberto Castello Branco.

"An asset-sales program already exists, but now we have a much more aggressive divestment program," Castello Branco said during an event Friday at the private Getulio Vargas Foundation, or FGV. "I believe that in the first four months of the year, we're going to carry out $10 billion in divestments and we intend to do much more than this going forward."

Petrobras currently is targeting $26.9 billion worth of sales in the 2019-2023 period, according to the company's most recent five-year investment plan. But the company announced last week it would expand the sales to additional onshore and shallow-water mature oil and natural gas fields, midstream and downstream assets. The fresh assets are part of the company's new resiliency plan, Petrobras said.

While the sales target appears aggressive given Petrobras' failure to meet its 2017-2018 divestment goal and pending legal challenges to the sales, the company has enough assets currently in the binding phase of negotiations to quickly make good on Castello Branco's forecast.

The biggest asset up for sale is gas pipeline operator Transportadora Associada de Gas, which is expected to fetch more than $7.5 billion. Last week, Petrobras reopened bidding for interested parties that have not yet participated in the sales process and want to submit a binding offer. Petrobras previously was in exclusive talks to sell 90% of TAG to France's Engie.

TAG operates more than 4,505 km of pipelines across 10 states in Brazil's north, northeast and southeast, with 10 compressor stations and 91 access points.

Petrobras is also in the binding phase of talks to sell two fertilizer plants to Russia's Acron.

The company has already completed two deals this year. Petrobras agreed to sell a 70% operating stake in the offshore Maromba Field to BW Offshore for $90 million while also completing the sale of its fuel distribution business in Paraguay to Grupo Copetrol for $381 million.

The asset sales should then accelerate through the rest of 2019, buoyed by a better business climate and the continued opening of Latin America's biggest economy under President Jair Bolsonaro, Castello Branco said. "In 12 months, we'll have three or four times the $10 billion, but this is going to depend on the market."

Petrobras sold about $14 billion worth of assets in the 2017-2018 period.

One of the key areas Castello Branco wants to focus is on the refining market, where Petrobras controls 98% of the country's installed processing capacity. "Petrobras' position, with 98% of refining, is an absurdity," Castello Branco said. "We're going to sell and remove any temptation to exercise this monopoly and, in the end, have less than 50%."

Petrobras' current plan for refinery sales outlines the sale of a 40% minority stake in four refineries divided across two separate packages of assets, one in the northeast and one in the south of Brazil. But Castello Branco said in late February that the model would be revised to include the sale of full operating stakes in several refineries.

While Castello Branco said he would eventually like to fully privatize Petrobras, the executive admitted the government lacked enough political capital to undertake such an unpopular move. Instead, the new management team will try to make Petrobras as lean as it can, Castello Branco said.

"We're going to transform Petrobras into the closest thing possible to a private company," Castello Branco said.



We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.


Story by Jeff Flick from Platts / SPGlobal.

- newsdesk@spglobal.com

03 18

Hit your target - Advertise with us

PW 300.000 plus request per week

Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1



Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld   / Elio Ohep - All rights reserved


This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.