Bloomberg News

Petrobras Sees ‘Gigantic’ Demand for Possible Asset Sales

December 13, 2011

(Updates with spending plan in third paragraph, shares in last paragraph.)

Dec. 13 (Bloomberg) -- Petroleo Brasileiro SA, Brazil’s state-controlled producer, is seeing “gigantic” demand for assets it plans to sell, said Chief Executive Officer Jose Sergio Gabrielli.

“We’re moving along well,” Gabrielli told reporters in Brasilia. “We met up with large global oil companies and the appetite is gigantic.”

Petrobras, based in Rio de Janeiro, is looking to raise $13.6 billion through sales and cost cuts to help finance the largest investment plan in the oil industry. Petrobras is investing $224.7 billion in the five years through 2015 as it taps the largest discoveries in Brazil’s history in the so- called pre-salt region in deep waters off the coast.

Petrobras may sell a refinery in Japan, some stakes in the 186 exploration blocks it has in the Gulf of Mexico and some blocks in Brazil’s Campos Basin that aren’t near existing infrastucture, Gabrielli has said. He declined to identify specific assets the company is looking to sell when asked by reporters today.

Petrobras rose 30 centavos, or 1.3 percent, to 22.72 reais at 1:43 p.m. in Sao Paulo.

--Editors: Jessica Brice, Robin Saponar

To contact the reporters on this story: Carla Simoes in Brasilia Newsroom at csimoes1@bloomberg.net; Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net

To contact the editor responsible for this story: Carlos Caminada at ccaminada1@bloomberg.net


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