Petrobras board approves sale of its LPG division for $819m

The board of Brazil’s state oil firm Petrobras has approved the sale of its liquefied petroleum gas (LPG) division for $819m, according to Reuters.

Mired in $130bn debt and hamstrung by a huge corruption scandal, Petrobras has been cutting budgets and divesting assets to help erase some of the red ink.

This sale entails offloading Liquigas Distribuidora to Cia Ultragaz, which is a subsidiary of Brazilian fuel distribution giant Ultrapar.

The deal still needs the OK from the government anti-trust agency CADE, which will give it a rigorous examination.

If approved, this sale will see Petrobras take a big step toward meeting its target of selling $15.1bn in assets over a two-year period, , which concludes at the end of this year.


Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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