Petrobras reportedly agrees Liquigás sale

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Thursday, November 17, 2016

Brazil's state-run oil company Petrobras has agreed to sell its liquefied petroleum gas (LPG) unit to industrial conglomerate Ultrapar, according to a local media report on Thursday.

Petrobras is selling Liquigás, as the unit is known, as part of a US$15.1bn divestment program, which it hopes to conclude next month.

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Newspaper Valor Econômico said a deal could be confirmed within days. The value of the transaction was not reported.

Last month Petrobras said it was in "advanced talks" with São Paulo-based Ultrapar over the Liquigás sale.

Ultrapar owns assets in the fuel distribution, chemical production, liquid storage and pharmaceutical segments.

Liquigás' portfolio includes 23 operating centers, 13 depots, a storage and loading facility, four bottling units and a distribution network of around 4,000 resellers.

Petrobras has raised around US$10bn from divestments in the past two years as it seeks to overcome a crippling corruption scandal and reduce debt.

The biggest deal so far has been the US$5.19bn sale of a 90% stake in the Nova Transportadora do Sudeste gas pipeline unit to a consortium led by Brookfield Asset Management.

Petrobras has also offloaded oil and gas fields, refineries and other distribution assets as it seeks to ease the industry's largest debt load and overcome a crippling corruption scandal.

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