Petrobras Starts Thermal Power Plant Binding Phase

(Petrobras, 14.Aug.2020) — Petrobras, following up on the press release disclosed on 15 June 2020, announces the beginning of the binding phase regarding the sale of four thermal power plants, three of which are located in Camaçari, in the state of Bahia and powered by fuel oil (UTEs Polo Camaçari), and one bi-fuel plant (diesel or natural gas) located in Canoas, in the state of Rio Grande do Sul (UTE Canoas).

Potential buyers qualified for this phase will receive a process letter with detailed instructions on the divestment process, including guidelines for due diligence and the submission of binding proposals.

This disclosure complies with Petrobras’ divestment guidelines and the special regime of assets divestment by federal mixed capital companies, provided for in Decree 9,188/2017.

This transaction is in line with the portfolio optimization and the improvement of company’s capital allocation, aiming at maximizing value for our shareholders.

The Thermal Power Plants

The UTEs Polo Camaçari are assets owned by Petrobras and include the Arembepe, Bahia 1 and Muricy plants, with a total installed capacity of 329 MW. The plants operate with fuel oil and have the possibility of conversion to natural gas operation.

UTE Canoas is an asset owned by Petrobras and has installed capacity of 249 MW. The plant is bi-fuel (natural gas and diesel) and therefore has potential operating gains with the expected expansion of the gas pipeline network and/or new regasification terminals.