Petrobras forges ahead with downstream, midstream divestments
Brazilian state-run oil firm Petroleo Brasileiro SA expects to conclude negotiations on the sale of its RLAM refinery in northeastern Brazil in the near future and is pushing ahead with the IPO of a gas pipeline unit, executives said.
Speaking to analysts following the release of the company’s second-quarter results, Chief Executive Roberto Castello Branco said the firm expects to seal a sale agreement for the refining unit within the next “one to two months.”
Abu Dhabi’s investment fund Mubadala Investment Co is in exclusive negotiations with Petrobras, as the Brazilian company is commonly known, after presenting the highest bid for the asset in June.
During the same call, Petrobras downstream chief Anelise Lara said Petrobras is pushing ahead with plans announced in 2019 to sell a clutch of offshore natural gas pipelines via an initial public offering. She said the IPO would not occur until 2021, though the company expects to seal an agreement with partners such as Repsol SA and Galp Energia SGPS SA that would be needed to go forward with the deal by the end of the third quarter.
Overall, the comments illustrate the bullish position of Petrobras regarding its ambitious divestment program, despite the reduced financial appetite for some assets due to the coronavirus pandemic.
Regarding output, Petrobras upstream head Carlos Alberto Pereira de Oliveira reiterated previous assertions that production would be lower in the second half of the year, hit by scheduled maintenance stoppages. He predicted eight such stoppages of approximately 15 days each.
After a long tradition of naming its leased platforms after cities, the company has decided to change its naming criteria to honor “national heroes,” the executives said. Two admirals, Almirante Barroso and Almirante Tamandare, are among the names selected by Petrobras for large platforms known as FPSOs. The vessels will be placed in the Buzios field, the world’s largest oil discovery this century.
Brazil-listed shares of Petrobras were off 2.3% in afternoon trade, roughly in line with the nation’s benchmark Bovespa equities index.
Reporting by Sabrina Valle and Gram Slattery Editing by Grant McCool and Matthew Lewis
Between mid-2019 and mid-2020, the amount of LNG terminal capacity in construction around the world more than doubled.
Executive Viewpoint: Excelerate Energy sees huge new-market potential for FSRUs
Excelerate Energy is a pioneer and market leader in floating LNG regasification solutions.
Executive Viewpoint: Midstream seeks cost-effective, “fit-for-purpose” solutions amid downturn
-Gregory L. Hall
BCCK Holding encompasses BCCK Engineering Inc., an international natural gas engineering company specializing in nitrogen rejection, nitrogen rejection for landfill gas, NGL recovery, CO2 removal, helium recovery, skidded LNG plants and oxygen removal.
Regional Focus: The role of small-scale LNG in Russia’s energy agenda
-Lorenzo Micucci, John Motta
A number of factors are challenging Russia’s position in the energy markets: the change in the global natural gas landscape, the abundance of gas, expanding LNG trade, and the increased interconnectivity among pipeline systems that makes possible reverse flows.
GasPro 2.0: A Webcast Symposium
Following the successful GasPro Webcast Symposium in October 2019, the third GasPro Webcast Symposium will take place on October 21, 2020.
The 2019 webcast drew attendees from around the world, with more than 80% of the audience working in company management or engineering divisions.
The 2020 web event will gather experts in the fields of LNG, gas processing and process safety to share market, operations and engineering technology and trends with our audience.
Attendees of the 2020 webcast will learn about market solutions and technology deployments in a number of areas: LNG delivery infrastructure, small-scale desulfurization for NGL, H2S removal for gas treating, process safety for safety instrumented systems, small-scale LNG project design, and advances in freeze component removal for LNG.
October 21, 2020 08:30 AM CDT