BR Distribuidora privatization raise Petrobras share price

Shares in Petrobras Distribuidora SA, Brazil’s largest fuel distributor, rose more than 6% on Wednesday after the state-owned company decided to go ahead with the privatization of BR Distribuidora.

Last Tuesday (07/23), Petrobras concluded the offer of sale of company shares in an operation valued, according to market sources, at R$9.6m. With BR Distribuidora privatization, the company’s share fell from 70.3% to about 37.5%.

Petrobras’ new management is aggressively reducing its participation in downstream and midstream operations to enhance its focus on offshore oil exploration and production.

Its fuel unit operates the largest network of gas stations in Brazil, with over 8,000 outlets operating under its brand name, BR Distribuidora.

 Shallow Water Oil Fields

Petrobras has signed two contracts this Wednesday (07/24) to sell oil fields in the Campos and Santos basins for US$1.5bn plus US$200m in future payments, the company said in a statement.

The Pampo and Enchova fields were sold to a Trident Energy subsidiary for US$851m and an additional future payment of US$ 200m, depending on oil prices. The Bauna field was sold for US$665m to a subsidiary of Australian Karoon Energy Ltd.

Source: Reuters

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