Petrobras pressing on with power generation divestments

Bnamericas Published: Tuesday, June 16, 2020
Petrobras pressing on with power generation divestments

Brazil's state-run oil firm Petrobras has started the non-binding phase of the process to sell off four thermopower plants.   

In this stage potential investors that registered to participate in the tender will receive guidelines to present non-binding proposals. 

The Arembepe, Bahia 1 and Muricy units are in the Camaçari generation cluster in Bahia state and have a combined capacity of 329MW. They are oil-fueled but can be converted to gas. The fourth plant is the 249MW UTE Canoas unit in Rio Grande do Sul state (pictured), which can use diesel and natural gas. According to Petrobras, this unit has the potential for operational gains by linking to new gas pipelines or regasification terminals.   

Last Friday Petrobras also started the binding phase of the process to sell its 49% stake in the Mangue Seco 3 and 4 wind power parks in Rio Grande do Norte state, which have total capacity of 52MW. The owner of the other 51% in these parks is Wobben Windpower, a subsidiary of German wind turbine manufacturer Enercon

Bidders will now receive guidelines to conduct due diligence and present binding proposals for the stakes in those facilities.   

The sales are part of the firm’s US$20-30bn divestment plan. Petrobras is offloading interests in Brazil’s electric power market in order to focus on deepwater oil and gas exploration and production.   


A fire hit Petrobras’ Reduc refinery in Rio de Janeiro state on Monday. The accident took place at a distillation unit that is now halted. The blaze was caused by a leak in fuel pumping equipment. According to a Petrobras statement, there were no victims and the plant’s fire brigade managed to extinguish the fire.    

Reduc is one of Brazil’s largest refineries as it produced 11.2% of the country’s derivatives in 2019. It can process 239,000b/d of oil and supplies 11 products, including diesel, gasoline and aviation kerosene. It started producing in 1961 and was not included in the privatization program.     

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