Petrobras to sell stake in Brazil fuel distribution business: report

Brazil’s state-controlled oil company, Petroleo Brasileiro SA has hired seven investment banks to sell a stake in its fuel distribution unit, Petrobras Distribuidora SA, reports citing sources close to the matter said.

Debt-laden Petrbras plans to completely withdraw from gas distribution and transport and biodiesel business and is working to sell some $20 billion to $30 billion in non-core assets over the next five years to reduce its hefty debt load.
Petrobras plans to sell a 37.5 per cent stake in its distribution network, BR Distribuidora, which has a combined worth of about 12.5 billion reais ($3 billion).
Reports said the investment banking units of Morgan Stanley, JPMorgan Chase & Co, Goldman Sachs Group Inc, Itau Unibanco Holding SA, XP Inc, Bank of America Corp and Citigroup Inc will manage the offering.
Petrobeas had announced a strategic plan to emerge as a high performance energy company focused on oil and gas, aligned with a commitment to greater value generation and resource allocation with an emphasis on deepwater exploration and production activities.
The company wants to see itself as “the best energy company in generating value for the shareholder, with focus on oil and gas and with safety, respect for people and the environment,” while also remaining a sustainable, competitive company that operates safely and ethically and is committed to growth.
Petrobras said its business strategies aim at ensuring that the resources are employed at the right time and in the right assets to ensure the highest possible return on invested capital.
It also seeks to maximise portfolio value, focusing on deep and ultra-deep waters, seeking operational efficiency, recovery factor optimization and partnerships, and operate competitively in refining, logistics and oil products trading activities with focus on Southeastern operations.