Petrobras to sell 49% of Brazil gas-distribution company to Mitsui
By SABRINA VALLE
Bloomberg
Petroleo Brasileiro SA, Brazil’s state-controlled oil company, is in the final stages of selling a stake in a natural-gas distribution holding company to Mitsui & Co. as it seeks to raise cash by divesting assets.
The sale of a 49% stake still needs final approval from the board of directors and regulators, Rio de Janeiro-based Petrobras said in a statement Tuesday.
Financial terms of the deal weren’t disclosed.
Petrobras has more than 7,000 kilometers (4,350 miles) of gas pipelines in Brazil that supply residential and industrial users, according to its website.
The company is cutting spending at peripheral businesses to focus on its most promising oil fields in deep waters in the South Atlantic.
CEO Aldemir Bendine said Monday that the company is working to reduce costs to withstand a combination of lower oil prices and a weaker local exchange rate, which has increased costs to service the company’s debt.
Petrobras joins other major oil companies including Chevron and Eni in selling assets amid a rout in oil prices to raise cash and reduce operating expenses.
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