Petrobras to sell fuel distribution business in Paraguay for $383.5m

Brazilian oil and gas firm Petrobras has reached an R$1.45bn ($383.5m) agreement to divest its fuel distribution network and other assets in Paraguay to Grupo Copetrol.

The deal was signed between Petrobras subsidiary Petrobras International Braspetro (PIB BV) and Grupo Copetrol’s Corporación Paraguaya Distribuidora de Derivados del Petróleo.

As part of the transaction, Petrobras will sell its stake in Petrobras Paraguay Distribución (PPDL UK), Petrobras Paraguay Operaciones y Logistics (PPOL) and Petrobras Paraguay Gas (PPG).

The companies to be sold through the deal are engaged in distribution and marketing of fuels, LPG, lubricants and other special products through a network of 197 service stations.

Other assets being offloaded include a storage terminal and operations in three airports.

Pursuant to the terms of the transaction, Petrobras will receive a $49.3m advance payment via a deposit into an escrow account.

The remaining $334.2m will be paid on the closing date of the transaction.

Having a network of 350 service stations and storage terminals, Grupo Copetrol distributes fuels and LPG in Paraguay.

The divestment is part of Petrobras’ plans to sell assets worth $21bn over a two-year period to optimise its portfolio.

In the first quarter of this year, the company’s net debt decreased to $81.4bn from $84.87bn in December last year.

The company’s net income during the period stood at R$6.96bn, while production stood at 2,680 million barrels of oil equivalent per day (boed).

The completion of the transaction is conditional on regulatory approvals according to the laws in Paraguay.