RIO DE JANEIRO, July 31 (Reuters) - Brazilian state-run oil
firm Petroleo Brasileiro SA expects to conclude
negotiations on the sale of its RLAM refinery in northeastern
Brazil in the near future and is pushing ahead with the IPO of a
gas pipeline unit, executives said on Friday.
Speaking to analysts following the release of the company's
second-quarter results, Chief Executive Roberto Castello Branco
said the firm expects to seal a sale agreement for the refining
unit within the next "one to two months."
Abu Dhabi's investment fund Mubadala Investment Co is in
exclusive negotiations with Petrobras, as the Brazilian company
is commonly known, after presenting the highest bid for the
asset in June.
During the same call, Petrobras downstream chief Anelise
Lara said Petrobras is pushing ahead with plans announced in
2019 to sell a clutch of offshore natural gas pipelines via an
initial public offering. She said the IPO would not occur until
2021, though the company expects to seal an agreement with
partners such as Repsol SA and Galp Energia SGPS SA
that would be needed to go forward with the deal by
the end of the third quarter.
Overall, the comments illustrate the bullish position of
Petrobras regarding its ambitious divestment program, despite
the reduced financial appetite for some assets due to the
Regarding output, Petrobras upstream head Carlos Alberto
Pereira de Oliveira reiterated previous assertions that
production would be lower in the second half of the year, hit by
scheduled maintenance stoppages. He predicted eight such
stoppages of approximately 15 days each.
After a long tradition of naming its leased platforms after
cities, the company has decided to change its naming criteria to
honor "national heroes," the executives said. Two admirals,
Almirante Barroso and Almirante Tamandare, are among the names
selected by Petrobras for large platforms known as FPSOs. The
vessels will be placed in the Buzios field, the world's largest
oil discovery this century.
Brazil-listed shares of Petrobras were off 2.3% in afternoon
trade, roughly in line with the nation's benchmark Bovespa
(Reporting by Sabrina Valle and Gram Slattery
Editing by Grant McCool and Matthew Lewis)