Petrobras to sell assets in Paraguay
Brazil’s state-owned oil company Petrobras, the largest fuel distributor in Paraguay with an 18% market share, disclosed plans to sell its assets in the country. The goal is to fully divest its shareholding in Petrobras Paraguay Distribución Limited (PPDL UK), Petrobras Paraguay Operaciones y Logística SRL (PPOL) and Petrobras Paraguay Gas SRL (PPG).
In Paraguay, Petrobras operates through the companies listed above in the retail and wholesale distribution and marketing of fuels, LPG and lubricants. Petrobras has a network of 197 service stations and 113 convenience stores in Paraguay. It has a distribution terminal in the city of Villa Elisa. It also operates in the aviation segment, operating at three airports.
The disclosure was announced on July 7, in compliance with the company’s divestment process and is in line with the guidelines of the Federal Audit Court (TCU).
Interested parties must have at least 50 retail outlets to qualify to bid for the company’s fuel distribution business. Companies interested in the business are required to have revenues of at least USD200 million to qualify to bid. For commodity traders interested in Petrobras’ Paraguay assets, they must have an office in Latin America and at least USD200 million in revenue to qualify to bid. Financial investors/investment funds are required to have made at least one oil and gas investment in the past five years and at least USD500 million in assets under their management.
Petrobras’ financial advisor for the potential divestment of its fuel distribution business in Paraguay is domestic lender Itaú BBA, which is part of the Itaú Unibanco group, one of the world’s largest financial conglomerates.
Interested parties must submit their expressions of interest by July 24.