Petrobras in talks with Raizen, bp for partnership in 'big' comeback on ethanol
Brazilian state-run oil company Petrobras is in talks with Raizen, bp and Inpasa for a possible joint venture in ethanol, two sources said, as the firm's CEO aims big in a comeback to the sector.
Petrobras is in talks with four or five firms in the ethanol business, Chief Executive Magda Chambriard told analysts on Friday during a call to present the company's $111-B strategic plan for 2025–2029.
"We have to do something big, compatible with the size of Petrobras, and we are talking to some market players," she said, without naming the firms.
Petrobras' announcement would mark a comeback for the firm to the ethanol sector after having announced in its 2017–2021 strategic plan that it would no longer produce biofuels.
"We are returning to ethanol in order to be a relevant operator," said Chambriard, adding she saw no reason for the company not to be in it, as ethanol is the main competitor to gasoline, a fossil fuel set to lose market share, according to Petrobras.
The firm plans to invest around $2.2 B in ethanol distilleries in the next five years, said director of energy transition Mauricio Tolmasquim. Petrobras has not yet decided whether it would focus on ethanol made from corn or from sugarcane, according to him.
"The idea is to start big, not start from scratch," Tolmasquim said. "We are talking here about a process that can be quick, because it means associating with someone who is already big," he added.
In the presentation, CEO Chambriard also said Petrobras has been delivering its capital expenditure and production within its guidance since August.
Her statement comes after Petrobras lowered in August its planned investments this year to between $13.5 B and $14.5 B, from $18.5 B planned previously.
"We have a lot of projects, we are expanding our operations in all segments," said Chambriard.
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