Petrobras sells power stakes, refineries in suspense

Brazilian state-controlled Petrobras agreed to sell stakes in two power generation companies to local energy firm Global Participacoes em Energia (GPE), but more significant downstream divestments remain in suspense.

The ambitious sales campaign is part of the company's strategy to optimize its assets and focus on pre-salt oil production.

Petrobras agreed to sell its 20pc stake in Termoeletrica Potiguar and its 40pc stake in Companhia Energetica Manauara to GPE, which is its partner in the two companies, for R160.3mn ($31.6mn). Assets in the transaction include two small hydroelectric plants in Tocantins state with combined installed capacity of 25.4MW and an 85.4MW gas-fired thermoelectric plant in Amazonas state.

In May, Petrobras reached a deal to sell three fuel-oil thermoelectric plants in Bahia state to GPE.

The transaction still requires approval by anti-trust regulator Cade.

Refinery cliffhanger

Downstream oil assets in Petrobras' extensive divestment portfolio have moved slowly. Under a revised deadline set by Cade in April, Petrobras must sign sales agreements for the 208,000 b/d Alberto Pasqualini refinery (REFAP), 46,000 b/d Isaac Sabba refinery (REMAN), and 8,000 b/d Lubnor refinery by 31 July.

The three refineries are among eight that Petrobras is selling. The divestments represent around 1mn b/d of capacity, or half of the firm's domestic processing capacity.

The $1.65bn sale of the 333,000 b/d Landulpho Alves refinery (RLAM) to Abu Dhabi's state-owned investment fund Mubadala -- the first transaction in the portfolio -- is expected to close by the end of September.

Deals for the other refineries are due to close by year-end: 30 October for the 6,000 b/d SIX shale processing unit, 166,000 b/d Gabriel Passos refinery (REGAP), and 130,000 b/d Abreu e Lima refinery (RNEST); and 31 December for the 208,000 b/d Presidente Getulio Vargas refinery (REPAR).