Petrobras says sales terms for gas pipes not finalised

Brazilian energy company Petrobras said June 9 that it was looking at selling some of the pipelines that bring gas from one of its largest deepwater fields to the coast, but had yet to make any final determinations.

Petrobras is on a major divestment programme, seeking buyers for various upstream, midstream and downstream assets to reduce its leverage and raise capital for investing in its deepwater offshore fields.

Responding to unspecified media reports, the company said it was indeed looking at sales options at the Route 1, 2 and 3 pipelines, which carry gas from the giant Lula field to different onshore points in the Sao Paulo and Rio de Janeiro states. But it is yet to define a sales model for these assets and the size of the equity interests it will divest.

“The company will keep the market informed about any relevant information on the subject,” it said.

The Brazilian company, known formally as Petroleo Brasileiro, in April sold its remaining 10% stake in natural gas transportation company Nova Transportadora do Sudeste (NTS) to Nova Infraestrutura Gasodutos Participacoes, a company formed by an investment fund that already holds a controlling interest in NTS.

Petrobras reported net income attributable to shareholders of $231mn in Q1 2021, a marked improvement from a $732mn loss recorded during the same period last year, but well below the $5.4bn in Q4 2020 profits.

Positive cash flow came in at $5.6bn, while debt reduction of $18.3bn brought its burden down to $71bn.