Petrobras accepting bids for sale of power generation assets

Petrobras accepting bids for sale of power generation assets

M&A Economy & Policy Equity Brazil Latin America

Brazilian oil company Petrobras said on Monday it is now accepting non-binding bids for the purchasing of stakes in five power generation companies following the announcements of the sale of biofuel and gas assets last week.

Petrobras released a teaser for its stakes in the five companies - Brasympe Energia, Energética Suape II and Termoelétrica Potiguar (20%), Companhia Energética Manauara (40%) and Brentech Energia (30%) – in early June.

The companies operate thermoelectric and small hydroelectric power plants in Pernambuco, Amazonas, Tocantins and Goiás.

Crédit Agricole is Petrobras' financial adviser on the transactions.

Petrobras is selling the power plants under a divestment program to lower debt. Last week, the oil major also released a teaser for the sale of its biofuels subsidiary Petrobras Biocombustível (PBIO) and announced the binding phase for its minority stake in natural gas pipeline company Nova Transportadora do Sudeste (NTS).

PBIO owns three biodiesel plants. The biofuel company’s stakes in BSBios (50%) and Bambuí Bioenergia (8.4%) are not included in the sale, the teaser stated.

Petrobras owns 10% of NTS, which operates a natural gas pipeline network in the states of Rio de Janeiro, Minas Gerais and São Paulo. The oil major released a teaser for the pipeline operator back in April.

In June, the company also sent out a teaser for its stakes in five exploratory offshore oil blocks in the Espírito Santo Basin and began the non-binding phase for the its 35% stake in the Manati field, a shallow-water concession in the Camamu Basin, off the coast of the state of Bahia.

Petrobras also recently completed the sale of its interest in seven onshore production fields in the Potiguar Basin in the state of Rio Grande do Norte to Rio de Janeiro-based 3R Petroleum at the end of May.

Earlier in May, the state-owned oil major started the non-binding phase for its fuel distribution business in Colombia and issued teasers for four thermal power plants.