Brazil's Petrobras Forges Ahead with Midstream, Downstream Divestments

RIO DE JANEIRO (Reuters) — Brazilian state-run oil firm Petroleo Brasileiro SA is pushing ahead with the IPO of a gas pipeline unit and expects to conclude negotiations on the sale of its RLAM refinery in northeastern Brazil in the near future, executives said on Friday.

Speaking to analysts following the company's second quarter results release, Petrobras downstream chief Anelise Lara said Petrobras is pushing ahead with plans announced in 2019 to sell of 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. 

During the same call, 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 during a competitive bidding process in June.

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