Vale SA (VALE3), the world’s largest iron- ore producer, is reviewing a plan to sell oil and natural-gas assets because the company wants to use gas for its operations in Brazil, said Vania Somavilla, Vale’s head of human resources and sustainability.
“We are revising this in line with our strategy to keep investments in gas,” Somavilla told reporters today in the city of Moju. “We want to use gas because its a transition fuel.”
Vale hired banks including Citibank Inc. to sell its oil and gas assets, and the banks are deciding on the best strategy for its oil assets, Chief Executive Officer Murilo Ferreira told reporters.
Vale entered the hydrocarbon exploration business in Brazil in 2007 and has stakes in both onshore and offshore blocks with certified oil and gas resources equivalent to 210 million barrels of oil, the company said in 2010.
The company said then it had 23 offshore blocks in 14 concessions in Brazil’s Santos, Espirito Santo and Para-Maranhao basins and two onshore concessions in the Parnaiba basin.
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