PETROBRAS CEO SEES OPPORTUNITY TO CREATE A MIDSTREAM COMPANY THAT WILL BUILD NEW GAS PIPELINES

Petrobras and some of its partners see an opportunity to create a spin-off company, with resources from the private sector, to work on the construction of new gas pipelines in the country. The information was revealed by the president of the Brazilian state-owned company, Roberto Castello Branco, during a conference call with investors.

As a reminder, Petrobras announced at the end of September an agreement with Shell, Repsol Sinopec and Petrogal that provides for the sharing of natural gas flow and processing infrastructures. From this partnership, Castello Branco said that he sees “an opportunity to create a midstream company, make a spin-off, whose shares may be launched on the market,” he said.

He added that this new company could be a target of an IPO and “become a midstream vehicle for the construction of new gas pipelines in Brazil with funds from the private sector, dispensing with public resources”.

The executive also stated that the agreement to integrate and share the flow and processing structures can unlock a lot of value embedded in these assets. “It is a very important perspective at a time when there is a demand for investments. There are a lot of investors looking for investments in infrastructure in Brazil ”, he concluded.

The agreement signed between Petrobras, Shell, Repsol Sinopec and Petrogal provides for the physical interconnection and sharing of flow capacities on Routes 1, 2 and 3 giving rise to the Integrated Natural Gas Flow System (SIE). Contracts are also foreseen that constitute the Integrated Natural Gas Processing System (SIP), which includes companies’ access to processing units, owned by Petrobras, located in Caraguatatuba, São Paulo, Cabiúnas and Itaboraí.

Source: PetroNoticias

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