Petrobras sells 50% stake in Belem Bioenergia Brasil to Galp Bioenergy

In Brazil, Petrobras signed a contract to sell its 50% stake in Belem Bioenergia Brasil to Galp Bioenergy BV, which holds the other 50% stake in the company. According to the Petrobras press release, the transaction value is R$ 24.7 million (about $6.3 million), which will be retained by Galp until December 2020 for potential compensation payments. Closing is subject to compliance with customary precedent conditions, such as CADE approval.

Belem was formed in 2011 by Petrobras and Galp for the production of vegetable oil and biofuel. Petrobras said in their release that the operation is in line with Petrobras’ Divestment System and is in line with portfolio optimization and improved capital allocation to create value for their shareholders.