State-controlled oil producer Petróleo Brasileiro SA has begun a search for a strategic partner for fuel distribution unit BR Distribuidora, which in recent weeks scrapped an initial public offering plan in light of deteriorating market conditions.
In a securities filing on Wednesday, the board of Petrobras, as the oil firm is commonly known, gave the go-ahead to management to proceed with the search for a partner. The process will be discussed at the next board meeting, the filing noted, without elaborating.
The filing indicated that management and board members at Petrobras are gauging more carefully the options for the high-performing unit. BR Distribuidora, which earned 121 billion reais (US$32 billion) in revenue last year and owns Brazil’s largest gasoline and biofuel station network, was valued at $10 billion by UBS Securities analysts around July.
Brazil Energy Insight 
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