Petrobras to shed assets in Argentina, Chile

Brazil

RIO DE JANEIRO, May 4, 2016 – Petrobras will sell assets in Argentina and Chile as part of ongoing divestment efforts and debt reduction, the Brazilian state-owned operator said Wednesday. The company is working to achieve a USD 14.4-billion divestment target.

The asset sale will see Argentina’s Pampa Energía purchase a 67.2% share in Petrobras’ local subsidiary in a deal valued at USD 892 million. Investors hold the remaining 32.8% in Petrobras Argentina.

Petrobras also agreed sell to its Chilean fuel distribution unit in a separate deal valued at USD 490 million. Private equity group Southern Cross will take over Petrobras Chile, which runs 279 petrol stations, among other facilities.

Both transactions are expected to close in the second half of 2016. Last year, Petrobras sold USD 700 million worth in assets.

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