MOSCOW (MRC) -- Petroleo Brasileiro S.A. (Petrobras), following up on the release disclosed on 12/20/2019, informs the beginning of the non-binding phase related to the sale of all shares of BSBios Industria e Comercio de Biodiesel Sul Brasil S/A (BSBios) by its wholly-owned subsidiary Petrobras Biocombustiveis S.A. (PBio), as per Bnamericas.
Potential buyers qualified for this phase will receive a descriptive memorandum with more detailed information about the aforementioned company, as well as instructions on the divestment process, including guidelines for preparing and submitting non-binding proposals.
This disclosure is in accordance with the guidelines for the divestiture of Petrobras and PBio and with the special regime for the divestiture of assets 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 the company's capital allocation, aiming at maximizing value for our shareholders.
PBio holds a 50% stake in BSBios and will sell it together with its partner, RP Biocombustiveis SA, which owns the remaining 50%, through a competitive process carried out exclusively by PBio.
As MRC informed before, the chief executive of Brazilian state-run oil firm Petroleo Brasileiro said in early December 2019 he wants to sell the company's stake in petrochemical company Braskem within 12 months, adding that he strongly disagreed with reported plans to delay the sale.
We also remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
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.
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