Petrobras analysing best model for selling new group of gas pipelines: CFO
[SAO PAULO] Brazil's state-controlled oil company, Petroleo Brasileiro SA, is analysing the best model for including a new group of natural gas pipelines in its divestment program, chief financial officer Rafael Grisolia told reporters on Wednesday.
Reuters reported earlier this month that Petrobras, as the company is known, was preparing to sell three more gas pipelines after successfully selling its larger TAG unit to France's Engie for US$8.6 billion.
Mr Grisolia said Petrobras was analysing whether to sell the three gas pipelines that link pre-salt oil fields to onshore infrastructure as a single block or if they can be divided for the sale process. Analysts expect the pipelines to be valued above US$3 billion.
Mr Grisolia also said the oil company would "probably" reduce its stake in the fuel distribution unit Petrobras Distribuidora SA to below 50 per cent from the current 71 per cent, effectively privatising the unit through a secondary share offering.
Reuters reported on Tuesday the company had hired nine banks to manage the transaction. The offering of BR Distribuidora shares will be led by the investment banking units of Citigroup Inc and JPMorgan Chase & Co.
"A private BR Distribuidora would be much more competitive", Mr Grisolia said.
The CFO said the government was not determining fuel prices or intervening in Petrobras and that all the recent decisions regarding prices were taken by the company.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Oil jumps, equities fall as Iran blasts fan Middle East tensions
Gold set for fifth weekly gain as geopolitical risks buoy demand
Oil holds near 3-week low as US sanctions interrupt easing tensions
Seatrium unit ordered to pay US$108 million in arbitration over equipment supply contracts
BP reshapes its leadership team as some executives leave
BHP to decide on future of nickel business by August, trims met coal estimates