Brazil’s state-operated oil firm Petroleo Brasileiro SA is studying the production of a subsidiary comprised of nearly 15 energy plants, which could then be sold via an initial public offering, analysts at XP Investimentos mentioned in a note sent to clients on Tuesday.
Analysts at the Sao Paulo brokerage headed by Gabriel Fonseca wrote the report to clients after breakfast with Chief Executive Officer Roberto Branco.
The analysts further mentioned in the note that Petrobras, as the agency is known, is contemplating collaborating with oil corporations present in Brazil’s so-called pre-salt marine oil space to create an organization composed of gas pipelines coming from the off-shore exploration regions. Petrobras could then exit the enterprise through a share offering, the report mentioned.
Petrobras operates 20 energy plants with 6,000 megawatts in overall capacity. Its divestment scheme has largely spared such assets so far, with the one divestiture being the sale of a 50% stake in the TermoBahia plant to France’s Total SA two years ago.
Petrobras didn’t immediately respond to a request for remark about the CEO notes to XP.
Petrobras has given a command to Credit Suisse to sell three fuel pipelines in the pre-salt region. In April, sources said Petrobras needed to reach a settlement with associates in the pre-salt space to go ahead with the sale.
Along with Petrobras, various international oil corporations like Royal Dutch Shell, Total, and BP are current in the pre-salt area.
The report highlights the focus of Petrobras’ current management, headed by Castello Branco, on selling off assets to cut back debt and concentrate on oil quest and production.