Petrobras downstream choice signals sales drive

The appointment of a new downstream director at Brazil´s state-controlled Petrobras signals an accelerated campaign to sell assets.

Roberto Castello Branco, the company´s recently inaugurated chief executive, named Anelise Quintão Lara to head the downstream unit. In her previous position as Petrobras executive manager of acquisitions and divestments, Lara oversaw multiple multi-billion-dollar sales of prime upstream assets. The company fell short of its $35bn 2017-18 divestment goal, but the more than $20bn in assets, including pre-salt stakes, sold over the period helped the company pare down its debt.

Petrobras is looking to shed around $27bn in assets over the next five years. Unloading stakes in brownfield refineries and attracting partners to greenfield projects are top priorities for the firm and the federal government.

The government under recently inaugurated far-right president Jair Bolsonaro has dismissed suggestions of privatizing Petrobras, but favors selling off refining and midstream assets.

In April 2018, Petrobras unveiled an initial plan to sell 60pc stakes in four refineries. The plan is on hold following a July injunction from the federal supreme court, but once resolved the divestment campaign could be expanded to include larger offerings or additional refineries, according to Petrobras executives.

Castello Branco also appointed Lauro Cotta as director of strategy, organization and management system and Rudimar Andreis Lorenzatto as director of production and technology.

Castello Branco, a University of Chicago-trained economist, is expected to further the company's focus on cost reduction and developing deepwater reserves.