Brazil's Petrobras offloads Japanese unit

Tuesday, October 18, 2016

Brazil's Petrobras has sold its Japanese subsidiary Nansei Seikyu to Taiyo Oil Company for US$129mn, the Rio de Janeiro-based firm said on Tuesday.

The deal hands the Tokyo-headquartered firm a 100% stake in a 100,000b/d oil refinery, 36 storage tanks, three loading piers and a single-point mooring facility, according to a Petrobras statement.

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In addition to refined oil products, Taiyo produces and sells petrochemicals.

"The sale follows a competitive bidding process and the price of the transaction was evaluated by three financial institutions," Petrobras said.

The federal oil company 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, other refineries and distribution assets.

On Monday, the company said it was in "advanced talks" with industrial conglomerate Ultrapar for the sale of liquefied petroleum gas unit Liquigás.