Petrobras weighing up offers for its fuel distribution arm

Petrobras weighing up offers for its fuel distribution arm

Petrobras, Brazil’s troubled state oil firm, has received bids for its fuel retail unit BR Distribuidora S.A., according to Reuters.

Recently appointed Petrobras CEO Pedro Parente, told Brazilian television about the offers without specifying the interested parties by name, nor the size of the offers.

BR Distribuidora is the largest distributor of petroleum derivatives and ethanol in Brazil and Latin America, with more than 7,000 gas stations.

The reported interest in BR Distribuidora has led to a surge in the parent company’s stock price.

Petrobras, embroiled in a longstanding bribery and corruption scandal has seen its image wrecked and its bottom line severely weakened, problems worsened by the world market slump in the oil price over that period.

It is the world’s most indebted oil company – at around $130bn owed – but still has vast offshore oil interests.

The company has been slashing budgets, cutting staff and divesting assets in an attempt to reduce the red ink.

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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