Petrobras considers putting their Brazilian distributor on public offering
Brazilian semi-public energy giant Petrobras is studying the option of a public offering of its subsidiary Petrobras Distribuidora S.A., reported the company in a press release yesterday.
Following a campaign of disinvestment, the company’s executive board authorized the analysis of strategic alternatives for their Brazilian distributor Petrobras Distribuidora S.A. after a meeting held on June 30. Among the possibilities being considered is looking for a new strategic partner and a public offering.
Petrobras Distribuidora is the leading petroleum retailer in the country, holding a 30 per cent share of the Brazilian market. The distributor has close to 7,900 service stations in Brasil, Chile and Uruguay.
Petrobras will sell 20 per cent of its participation in the oil fields of Bijupirá y Salema, currently being operated by Shell, to PetroRio for US$25 million as part of the disinvestment strategy. These fields have an average daily production of 22,000 barrels of oil and 325,000 cubic meters of associated gas, according to America Economía.
The Brazilian oil giant has suffered a strong corruption campaign which has affected their status and economic stability. Four former Petrobas directors have been arrested since the start of the company’s crisis as part of the Lava Jato investigation. The latest arrest was only made yesterday; when former International Director Jorge Zelada was detained by Brazilian Federal Police on suspicion of money laundering, corruption, tax evasion and contract fraud.
