Petrobras On Biofuels Segment Exit Strategy

(Petrobras, 20.Dec.2019) — Petrobras reports on divestments in the biofuels segment. The company guideline to exit this segment, announced in 2016, accelerated in 2019 and four important transactions were carried out this year:

1. Sale of stake in Belem Bioenergia Brazil (BBB) – Petrobras Biocombustível S.A. (PBio), a Petrobras subsidiary, has completed the sale of 50% of its stake in BBB to Galp Bioenergy B.V., as disclosed on 11/01/2019;

2. Start-up of the opportunity disclosure stage (teaser) relating to the sale of BSBios Indústria e Comércio de Biodiesel Sul Brasil S/A (BSBios) – Launch of the teaser in the market for the joint sale of all BSBios shares held by PBio and its partner RP Biocombustíveis S.A., as disclosed today;

3. Sale of shares issued by Bioóleo Industrial e Comercial S.A. (Bioóleo) held by PBio (6.07%) – Petrobras’ Board of Directors approved on 12/18/2019 the put option exercise of Bioóleo shares by PBio for 2H Participações Societarias EIREI (2H), which holds the remaining interest in the company. The conclusion of the transaction is still subject to final approvals between the partners. 

4. Dissolution of Participações em Complexos Bioenergéticos S.A. (PCBios) – On10/23/2019, Petrobras’ Board of Directors approved the dissolution of PCBios, in which Petrobras holds a 50% stake in a partnership with Mitsui & Co. Ltd., which owns the remaining 50% of the company. The conclusion of the transaction is still subject to final approvals between the partners.

With such divestments, Petrobras reinforces its focus on its strategy of keeping its portfolio with worldclass assets where it is the natural owner, while allowing new players to access this industrial segment that is also growing in Brazil.

Petrobras’ exit from the biofuels segment is in line with its portfolio repositioning strategy to become a company more focused on oil and gas upstream in deep and ultra-deep waters, maintaining part of its refining capacity and excellence in the global commercialization of oil, gas and oil products. 

Petrobras reaffirms its commitment to continue the development of technology routes for the production of sustainable diesel and BioJET fuel, in line with its decarbonization target of the oil & gas industry through the refining infrastructure.

***