MOSCOW (MRC) -- Mexico's Alpek SA de CV is expected to offer up to USD700 M for Brazilian state-run oil company Petroleo Brasileiro SA's (Petrobras) petrochemicals units in the northeastern state of Pernambuco, a source with direct knowledge of the matter told Reuters.
Petrobras announced on Thursday exclusive talks with the Mexican group over the sale of PetroquimicaSuape and Citepe. The Brazilian company and Alpek will negotiate the deal for 60 days.
Petrobras' petrochemical units have accumulated USD1.7 B in losses over the last two years, which included impairment charges related to the largest-ever corruption probe in Brazil.
The plants in Pernambuco produce PTA, raw material for PET resin, and polyester fiber. The sale will reduce Petrobras' debt, as well as the need to inject more cash into the plants, which have not been profitable yet, the source added.
Beyond the sale of its petrochemical assets in Pernambuco, Petrobras has tried to sell its 36% stake in Latin America's largest petrochemical company, Braskem SA.
The deal has stalled as investors fret about the involvement of Grupo Odebrecht SA, Braskem's controlling shareholder, in the Car Wash probe.
Odebrecht has put its 38% stake in Braskem as collateral to banks in a debt renegotiation concluded in July.
As MRC informed previously, in January 2016, Petrobras hired Brazilian bank Banco Bradesco SA as a financial adviser and started to pitch the sale to foreign investors. Petrobras owns a 36 percent stake in Braskem, Latin America's largest petrochemical producer. The sale would help Petrobras meet its target of selling USD15.1 billion worth of assets in 2015-16, a key part of its plan to cut debt as oil prices plunge to 12-year lows.
Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC